The Motley Fool Discussion Boards

Previous Page

Investing Strategies / It's Earnings That Count

URL:  https://boards.fool.com/hewitt-thanks-for-the-post-i-think-its-a-useful-25133308.aspx

Subject:  Re: What's Your Portfolio's PIV-ER? Date:  2/5/2007  6:35 PM
Author:  zeezeebop100 Number:  1289 of 1817

Hewitt:
Thanks for the post. I think it's a useful approach.
I was curious though: Mathematically, you can derive the equation ER = (1-PIV)/PIV. IE: for Walmart PIV=48/71=0.676. ER=(1-0.676)/.676=0.479
So what? Well if your portfolio has a PIV of 0.52, it's ER must = (1-0.52)/0.52 = 0.923 or 92.3% not 128%.
Did I miss something here?
All the best,
Zee
Copyright 1996-2022 trademark and the "Fool" logo is a trademark of The Motley Fool, Inc. Contact Us