Remove Dividends Remove Price to Earnings Remove Risk Premium
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Data Update 2 for 2024: A Stock Comeback - Winning the Expectations Game!

Musings on Markets

In the graph below, I look at the monthly levels on the index and price returns, by month: On a month-to-month basis, stocks started the year well and had a good first half, before entering a tough third quarter where they gave back most of those gains.

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Methods of Business Valuation by Their Profitability

Equilest

This multiple is similar, by analogy, to the PER (Price to Earnings Ratio of listed companies). Thus two companies with the same level of results but different future performance risks will have different values. On the other hand, the risk premium corresponds to the risk of investing money in this particular company.