^V^ PE 1 ^V^

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PE = Share price/ EPS

From year 1990 to 2000 , avg FD rate was around 8 %

From Year 2001 to 2007 , avg FD rate is around 6 %


Hello bro benjamin, i know u r loaded lah. those ppl placed their FD more than 1 mil will enjoy special rate like our bro benjamin..ha ha


take d average , i will say is around 6.5% ^V^ agreed guys ?

hence : - PE 15 is as same as 6.6% FD rate, how i got that ?

simple :- 1/15 x100% = 6.6%

if PE @ 20 means 1/20 x 100% = 5%

If PE @ 25 means 1/25 x 100% = 4%

If PE @ 30 means 1/30 x 100% = 3.3%

If u invested one dollar in stock x, n this stock x giving u EPS of 10cts ( 1/0.10 = PE 10 ), this means it needs 10 years for u to gain back yr capital of one dollar ^V^

In short PE 10 means u need 10 years to recover yr capital

PE 20 means u need 20 years to recover yr capital

Now calculate yrself, if stock x traded at PE 3 , answer me, what is d FD rate for PE 3 ? n u need how many years to recover yr capital ?

If u can answer that.. this show u r HALF understand d magic key of PE !

answer that ^V^