Solid Composite Decisive P/E during Extremely High Inflation, Bearish and Uncertainty Periods

The following P/E (Extremely Conservative) Formula is only valid if the Criterias below are met simultaneously:

ROIC > CICC (Value Constructive Case)

ROA > CTAC (Value Constructive Case)

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P/E (Extremely Conservative)

= ∜(ROIC × ROA × CICC × CTAC)

= (ROIC × ROA × CICC × CTAC)^(1÷4)

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It is a Solid Composite Decisive P/E during Extremely High Inflation, Bearish and Uncertainty Periods.

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Likewise,

P/E (Optimistic, Bullish Period) ≥ ROIC

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Reference :

https://open.substack.com/pub/absolutetoal/p/roic-vs-growth-what-drives-pe-ratios?utm_source=share&utm_medium=android&r=5g11d4