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Many components in the price of a publicly-traded stock are based on future expectations. For example, the P/E ratio looks to expected earnings; and the
Many components in the price of a publicly-traded stock are based on future expectations. For example, the P/E ratio looks to expected earnings; and the Dividend Discount Model incorporates future expected dividends. Considering this, why do investors bother to look at the historical performance of a company when future behavior is what really counts?
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