Half year into 2013, RHB investment analysts are already using forward price earning of 2014. It is still one and a half year away. But I think that's how the valuation in Malaysia work, and probably that's how international equity valuation work too. 1.5 years forward earning, it suddenly give room to a lot of stocks to run further, it suddenly open more opportunities for investment.
To study and value a company, we should try to forecast the next 2 to 5 years earning (try our best to guess base on previous track record, management planning, contract in hand, economy growth etc) and have roughly in mind how the stock price will be down the road. Better company will have better earning visibility and the better management planning and execution ability. Better company will let the investor know their direction clearly.
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