In Los (d) for – Equity valuation – Application and process
For Inferring or extracting market expectation, we have a concept for Re also, where we can calculate Re based of reverse engineering, and in such a case P0. assumed to be equal to IV0, and therefore we not analyse whether stock is overvalued or undervalued.
While in equity valuation part 2, chapter 1 for ddm (point 10). – we have calculated implied Re, based on GGM, but there we compare both ER vs RE to take position.
Isn’t it seems to be contradictory?
(Or my notes are wrong)
Share a snapshot of your notes.