Friday, 12 October 2012

Fundamental Method


Fundamental Method
               
     This method is simply the present value of the future earnings stream. This can be problematic for you because earnings, in a growth company are pushed into the future. Once a company decides on a high-potential growth strategy, there are no calculated earnings because all cash is applied to increase the growth rate. The purpose of this, is to reap a huge increase in earnings in future years.

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