Finance & Investing · Valuation
A topic within Valuation, itself one of 10 topics in that field and part of Finance & Investing.
2 works
Michael J. Mauboussin & Dan Callahan
Breaks the price-earnings multiple down into its return-on-investment and growth components to argue that comparing multiples across companies without adjusting for those drivers is close to meaningless.
Jing Liu, Doron Nissim & Jacob Thomas
Tests valuation multiples empirically across industries and finds forward-earnings multiples produce the smallest pricing errors, with cash-flow and book-value multiples adding little once forward earnings are used.