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ssi15 ssi15
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A month ago
Which of the following is NOT true about the P/E ratio?

▸ P/E ratios only work well on companies in the high growth stage of their lifecycle.

▸ A comparison of one company with its peers also involves a great deal of subjectivity regarding company-specific characteristics.

▸ The volatile nature of earnings implies a great deal of volatility in P/E multiples.

▸ P/E ratios are uninformative when companies have negative or very small earnings.
Textbook 
Corporate Finance

Corporate Finance


Edition: 5th
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sagitario81sagitario81
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A month ago
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Good timing, thanks!
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Thanks
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