Hacker News new | ask | show | jobs
by dpc_pw 1992 days ago
I would like to see this metric but where instead of substraction they should use division.
1 comments

Subtraction makes sense here as you are trying to find the excess yield of equity over dividend.

A yield of bond: 0.5, equity 4 vs bond: 1, equity: 4.5 doesn't change his argument, but changes the ratio significantly.