/biz/ - Business & Finance

>>53293183
>image related, equation
It's a lot easier to predict future P/E, future earnings and future shares outstanding than it is to predict future price.

The image in my previous post is outdated. It's not my latest model. It only uses the simplest assumptions to predict PE & earnings. Previous pic rules:
>Future PE is equal to the average of the last 5 years
>Rate of change of earnings will be equal to the average of the last 5 years
>rate of change of shares outstanding will be equal to the average of the last 5 years
My newest model uses Random Forrest to predict those much better.