According to the model, Justified forward P/E = corporate bond yield + d*LTEG.
But sometime I saw the question just gives you a trailling P/E, so must I convert it into forward P/E before justifying the equity market is over or under valued?
According to the model, Justified forward P/E = corporate bond yield + d*LTEG.
But sometime I saw the question just gives you a trailling P/E, so must I convert it into forward P/E before justifying the equity market is over or under valued?