%0 Journal Article %A Harold Bierman, Jr %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