Thanks for the reply. But 8.5 PE is constant which was derived around 100 years back, How did graham arrive at this number ? how he suggest that you can value this no growth company at 8.5 Multiple. Maybe need to look at that time average multiple ? As you had said, that time there traded by tangible assest but can we derive multiple for intangible as well by looking at nifty PE because its already factored in ? my end goal is not to derive a formula but to reduce the screening time by simply looking at and to do a deep study.
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