P/E Analysis & Forecasting
DEMARCHE P/E ANALYSIS HELPS YOU ANSWER THE QUESTION: IS OUR P/E MULTIPLE WHAT IT SHOULD BE?
The DeMarche Factor Model has identified the characteristics that drive P/E and quantified the impact that each has on P/E multiples. This enables us to measure your company’s exposure to these factors. Armed with this information you can explain your stock’s P/E relative to your competitors for capital or your peers and develop strategies for enhancing your multiple.
From the basics of valuation, we know that your company’s expected earnings growth rate and its discount rate drive P/E. DeMarche provides an in-depth analysis of the factors that affect both of these areas and compares your stock to a universe of ‘clone’ companies that closely resembles your company. (DeMarche Clones are different from your peers and are your true competitors for capital.)