Risk, Return and Forecast Negative Correlation of BETA and PE
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Authors
Kim, Gew-rae
Issue Date
2016-04-01
Type
Presentation
Language
en_US
Keywords
Forecasting , Price earning ratio , Risk adjusted
Alternative Title
Abstract
We all want to forecast returns. Profits are the main sources of corporate valuation increase and price earnings ratio has been widely used to select stocks. Half of the US corporate profits come from international sales and that also depends on currency rate, too. This research re-visits traditional PE ratio approach and propose new implication of PE ratio approach using risk consideration.