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Dean -

I agree we need to factor time into our valuation. In one sense, PIV-ER takes the time value of money into account because we use a discount rate. With a discount rate, the further out we go in years, the smaller the present value of our forecastead earnings. The lower the present value of forecasted earnings, the smaller a firm's intrinsic value, the higher its PIV (bad), and the lower its ER (again, bad).

But if you are thinking along the lines of a minimum CAGR, I have another valuation spreadsheet for that.

Have you estimated your portfolio's weighted average PIV-ER (or have any other readers?)


Hewitt
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