%0 Journal Article
%A Bierman, Harold
%T The Price-Earnings Ratio
%D 2002
%R 10.3905/jpm.2002.319854
%J The Journal of Portfolio Management
%P 57-60
%V 28
%N 4
%X 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.
%U https://jpm.pm-research.com/content/iijpormgmt/28/4/57.full.pdf