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The market always sells on the extrapolation of earnings 12 months out.
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With a bit of extrapolation, Heppelmann calculates that his $245 million Small Cap Value portfolio, with average expected growth of 10% to 15%, is worth its 18 average multiple of earnings, well under Graham and Dodd's 21 to 28 P/E range.
* £3,854,328 for future loss of earnings.
Resumption of earnings growth?
Should loss of earnings be compensated?
A spate of earnings disappointments.
Consistency of earnings and growth.
Discontinuities in earnings distributions at zero have been widely cited as evidence of earnings management but not without controversy.
Use a range of earnings estimates.
What about the matter of earnings distortion?
Second, potential deterioration of earnings quality.
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