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The math behind stock valuations

Tong Kooi Ong + Asia Analytica
Tong Kooi Ong + Asia Analytica • 5 min read
The math behind stock valuations
Ultimately, your own valuation is also dependent on what your risk appetite is. Photo: Bloomberg
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A simplified valuation model for stocks (as we have often articulated) is

Price or Value = E/(r-g) or PE = 1/(r-g)

Where:

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