When Entry Price = √(100 × EPS × DPS)
Subject : When Entry Price = √(100 × EPS × DPS) — PDD Case Study
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(A)
P/E = Dividend Yield
has happened
If and When
Price = √(100 × EPS × DPS)
.
EPS = Earnings Per Share
DPS = Dividends Per Share
.
When that happens, it literally means:
.
(I)
If Entry Price = √(100 × EPS × DPS), Synergy Value of EPS_DPS of the stock is paid.
.
(II)
Whereas the Synergy Value of G_EPS (or Synergy Value of ROIC_EPS) is ABSOLUTELY FREE.
.
Remark :
It's beautiful.
.
(B)
Case Study
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PDD
FY2025 Non-Gaap
.
EPS (Non-Gaap, Diluted)
= USD 10.3507581966
.
DPS (Non-Gaap, Diluted)
= Theoretical Affordable Payable Dividends
= Dₜₐₚ
= USD 2.0475622232
.
Entry Price
= √(100 × EPS × DₜₐₚPS)
= √(100 × 10.3507581966 × 2.0475622232)
= √(100×10.3507581966×2.0475622232)
= USD 46.0367477835
.
At USD 46.0367477835 :
(I)
P/E
= 46.0367477835 ÷ 10.3507581966
= 4.4476691378
.
(II)
Theoretical Affordable Dividend Yield, DₜₐₚY (%)
= 100 × 2.0475622232 ÷ 46.0367477835
= 4.4476691378
.
(III)
P/E
= DₜₐₚY (%)
= 4.4476691378
.
(IV)
Synergy Value of EPS_DPS of the stock is paid.
Synergy Value of G_EPS (or Synergy Value of NetROIC_EPS) of the stock is ABSOLUTELY FREE.
.
Remarks :
(I)
DₜₐₚPS = Theoretical Affordable Payable Dividend Per Share
.
(II)
DₜₐₚPS ≠ Actual Distributed Dividend
Per Share
.
Reference :
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