I believe I read some place that this ratio was for primarily high tech stocks? Which sectors do we not use this ratio? Also, I can't find many,if any, five year earning estimates for these small companies. Anybody else having any luck?
As I recall from Gardners book the Fool Ratio isn't for cyclical stocks among others. Banks and small margin operations don't fit either. I have yet to find 5 year projections, year by year, for ANY company. In their absence I use First Call's long term projection which appears to be a 5 year outlook.