Yes the only alternative, and brokers do this, is estimate the 2021 profit and establish a forward P/E (as opposed to the trailing P/E) against which they value the stock and discern a Buy value. They do a lot more work on the valuation besides the forward P/E of course but that would be part of the process. As a financial year moves on, the less value can be placed on the trailing P/E. Buying stocks on the basis of a trailing P/E when the circumstances in the current year have changed is dangerous.
Yes the only alternative, and brokers do this, is estimate the...
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