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Re: Margin of Safety Calculator for MSN Money
This MOS calculator seems to be ultra conservative. If there are extremes on the PE, I would average out the PE as I think Phil suggested. It makes a big difference on the MOS. Thanks for the calculator, it does help confirm the MOS on most occasions.
on page 156, it says "(my best guess upon looking at this chart and seeing a high of 35.3 and a low of 12.1), we'd use 23 for the future PE, not 48."
on page 157, "and we get our "Rule #1 PEs" by picking the lower of either the historical PE or the default PE."
on page 158, "The Rule # PE is just the lower of the default PE or the historical PE."
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