RE: RE: BIPVThank you HR.
I don't believe it was ever cleared up as to whether M.C. was referring to gross earnings (sales) or net earnings (profit). I suspect very much that he was referring to gross earnings but in the murky waters of analysis, one can make many interpretations, most of them wrong, The formula I was using is based on gross earnings or sales at 4x.
Stocks commonly trade at 20-30 times their net earnings per share.
But a good reason for not getting too wrapped up in technical analysis other than plain DD and common sense.
Too many variables.