Is There Reinvestment Risk in the Stock Market?

In reality, if o t c m is priced at a pe of 25, that's really like having a free cash fo yield of five %. Because price to free cashfo is likely 20 instead of 25. That means, if my hurdle rate is ten % total, i really only need it to grow by five % a year while i own it. Yes? So this is a similar one, the same issue. This gets into math, things that are complicated that we have to simplify in our heads all the time when doing this. And everyone's doing them,. Whether they you're reading a paper on an economic topics, or your reading about he returns and stockmark or whatever.