What formula to use to calculate the P/E multiples given different scenarios for ROIIC and earnings growth?

Hi,

I'm reading Mauboussin's paper named "What Does a P/E Multiple Mean?" and I can't figure out how he came with the P/Es shown in Exhibit 5 of the paper.

Does anyone could give me the formula and a step-by-step calculation to illustrate ?

Thanks.

Here is the link to the paper : https://www.valuewalk.com/wp-content/uploads/2014/02/document-805915460.pdf

Submitted October 01, 2018 at 12:31AM by Ladzo60 https://ift.tt/2xOQ1p0