TY - JOUR T1 - The Price-Earnings Ratio JF - The Journal of Portfolio Management SP - 57 LP - 60 DO - 10.3905/jpm.2002.319854 VL - 28 IS - 4 AU - Harold Bierman, Jr Y1 - 2002/07/31 UR - https://pm-research.com/content/28/4/57.abstract N2 - The P/E ratio is a widely used tool for valuation of common stock. One of its prime virtues is the simplicity of calculation. In this article the author suggests that in some situations a more complex calculation, but analogous to a P/E ratio, gives more useful information. The two situations reviewed are for a firm with an abnormal liability and for a firm with an abnormal amount of cash available for distribution. In these situations, adjustments to the P/E calculations of the type illustrated are desirable. ER -