Although, the proportion of companies that are already in stage 2 is likely to be higher in the value universe than in the growth one. Therefore, is the 2-stage model using the same length is a good indicator to estimate the Fair Forward P/E? Would like to hear from you on that matter.
Nonetheless the conclusion and graphs are really interesting!
Hi Gautham,
Thanks for this great article,
Although, the proportion of companies that are already in stage 2 is likely to be higher in the value universe than in the growth one. Therefore, is the 2-stage model using the same length is a good indicator to estimate the Fair Forward P/E? Would like to hear from you on that matter.
Nonetheless the conclusion and graphs are really interesting!