MFG 1.98% $9.81 magellan financial group limited

MFG Fair Value, page-132

  1. 1,113 Posts.
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    the roger montgomery approach is highly simplified. i would not use it to value MFG. it assumes the 47% ROE is sustainable and that incremental funds can be reinvested at that rate, forever, which is doubtful. what happens to your valuation if the ROE is 30%?
 
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