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Limits are a bit too much. For example, for a P/B of 2 (modest, e.g. a value stock), EY + DY will have to be > 20%, which is a lot.

What would your thresholds be for reasonable P/B and EY?

All in all, about as good as any other formula.

I suppose any formula is "good" as long as it's mathematically sound. What other investing formulas do you feel are worth considering?

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