Value Based Anomolies Flashcards
1
Q
Who found that stock had better returns with p/e stocks
A
Basu, 1975
2
Q
Critique of P/E
A
Fama and French, 1992 critique- price to book value better than p/e
3
Q
Critique of psr
A
Nathan et al, 2001
Not good for financial services, best to stratisfy
4
Q
Critique of PEG ratio
A
Little, 1962
Earnings growth is random can’t replicable be predicted
5
Q
P/E formula
A
Share price/ EPS in last year
P/E= 1-payout ratio/ discount ratio-growth rate
6
Q
Psr
A
Price/sales per share
7
Q
Peg
A
P/e Ratio/earnings growth rate
