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The P/E Ratio: A User's Manual

Actively Speaking Podcast

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How Do You Discount Cash Flow?

The Gordon growth model is based on assumptions about how a company will grow over the long term. But it doesn't mean that companies are going to generate the same cash flow as they used to, says John MacIntosh. In other words, PE and peg ratios don't tell you what we think they should be telling us.

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