The meeting continues with Kaminski providing some follow-up from the club’s last meeting:
“I have more information on KPK Inc., which we discussed in our last meeting. You may recall that we settled on a discounted cash flow model that we considered appropriate for the stock. I have used it to calculate the justified fundamental P/E. In addition, along with current and forecasted EPS for the next four quarters, I have determined other P/Es for the stock (Exhibit 3). Because the stock is part of the NYSE Consumer Goods Index that Zhang mentioned earlier, I have also included the index P/E. Based on this analysis, I recommend that the club buy KPK shares.”
EXHIBIT 3
VARIOUS P/E MULTIPLES 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.
此题答案说foward pe不可靠，所以用trailing比较，教材有出处吗，我觉得得看justified PE是leading还是trailing，此题又没有相应说明
