Re: Buffettolotgy?
[ QUOTE ]
I find that my forward looking EPS seem to be grossly high – to the point of almost unrealistic. Ok not a question, but why is this happening?
[/ QUOTE ]
Your methodology is flawed. Book value is not a good indicator of future value of the company. Look at a company like Google (GOOG), the great potential behind Google is that they can increase earnings without increasing book value much at all. They don't have to open stores to get more customers, they just add a few computers which are a very small part of the compainies overall value.
|