Decrypt Index Value and P/E Ratio is a Price to Earnings ratio / Price to Earnings multiple that deals with the Index Prices, Price Earnings Ratio / Multiple, Expected Market Returns, and Earnings Growth. Based on these it is possible to understand what P/E drivers are built in the Index Price (Price Scenario) and build own Expectations in the Value Scenario and understand the Gap that exists between Price and Value. This supports decision-making and helps the Investors to determine whether an Index is Under Valued or Over Valued.
The Model Discounts the Future Earnings by the Expected Market Return (Discounted Future Earnings Model). This Module is primarily used to value Indices.
Please view the Video Link below to quickly learn how to Navigate the Decrypt index Value and P/E Module.