Normal
You are right Ducati, but that does not mean that the formula mentioned is wrong.I value a stock based on past 5 years earnings.They need to be consistent - no losses, they need to show growth, and there needs to be consistent and growing dividends.As a quick calculation is to add up the past 5 years earnings and multiply that by 4 to get the approximate Market Cap.
You are right Ducati, but that does not mean that the formula mentioned is wrong.
I value a stock based on past 5 years earnings.
They need to be consistent - no losses, they need to show growth, and there needs to be consistent and growing dividends.
As a quick calculation is to add up the past 5 years earnings and multiply that by 4 to get the approximate Market Cap.
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