P/E Ratios as Predictor of CAP Rates?
John Reeder of Real Property Alpha has written a post exploring the possibility of a company’s P/E ratio predicting CAP Rates. If you look at the chart below, the numbers don’t really seem to correlate to capitalization rates as I see the market. Company P/E Ratio Target 9.21 Wal-mart 14.84 Safeway 8.06 Kroger 10.94 Macy’s [...]
