官网题目
PLES RELATED TO KPK INC. AND ITS INDUSTRY
| Trailing P/E | Forward P/E | Justified (Fundamental) P/E | Consumer Goods Index P/E |
|---|---|---|---|
| 14.6 | 13.7 | 15.0 | 14.8 |
Q. Which of the following best supports Kaminski’s recommendation for KPK? The justified (fundamental) P/E is greater than the:
- trailing P/E.
- forward P/E.
- index P/E.
Solution
A is correct. Kaminski recommends that the club invest in KPK. That would be appropriate if the company is currently undervalued. He has forecasted a share price based on fundamentals (DCF) and has forecasted EPS. Therefore, the club can calculate a justified (fundamental) P/E based on those inputs and compare it with the other P/E values to determine the attractiveness of the stock. The justified (fundamental) P/E would be a better metric to base the decision on than one of the other P/Es because it is supported by company fundamentals. From Exhibit 3, the justified (fundamental) P/E is greater than the trailing P/E. Therefore, KPK is currently undervalued by (15.0 – 14.6) ÷ 14.6 = 2.7%, and the club should invest.
B is incorrect. The forward P/E is not the most reliable P/E, because it is not based on company fundamentals.
C is incorrect. The index is a general comparable and does not represent the value of the company as well as the justified P/E. Therefore, it not as reliable a buy signal.
这个justified fundamental PE 是leading还是trailing？我以为justified trailing PE就和trailing PE比较，leading 就和forward 比较，而答案似乎认为foward PE是与公司fundamental 无关的？
