29-01-2018, 07:11 AM
It would be more helpful to create a chart for this and map it to STI index. Earnings can fluctuate fast QoQ though depending on economy.
But yes it's a good indicator, buffet also had a similar one measuring market cap to GDP ratio which has been quite accurate also.
For Opmi, if u spend enough time looking at companies earnings u will tend to get an Idea of how expensive companies are getting and also which sectors are getting overvalued and which are very undervalued.
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But yes it's a good indicator, buffet also had a similar one measuring market cap to GDP ratio which has been quite accurate also.
For Opmi, if u spend enough time looking at companies earnings u will tend to get an Idea of how expensive companies are getting and also which sectors are getting overvalued and which are very undervalued.
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