top | item 25560937

(no title)

dpc_pw | 5 years ago

I would like to see this metric but where instead of substraction they should use division.

discuss

order

shabda|5 years ago

Subtraction makes sense here as you are trying to find the excess yield of equity over dividend.

A yield of bond: 0.5, equity 4 vs bond: 1, equity: 4.5 doesn't change his argument, but changes the ratio significantly.