The price-to-earnings (P/E) ratio of asset i is defined thus:
\text{P/E}_{i} = \frac{P_{i}}{E_{i}} |
where:
P_{i} is the estimated fair value of asset
i
\textit{E}_{i} is the 5-year trailing average earnings of asset
i
The price-to-earnings (P/E) ratio of asset i is defined thus:
\text{P/E}_{i} = \frac{P_{i}}{E_{i}} |
where:
P_{i} is the estimated fair value of asset
i
\textit{E}_{i} is the 5-year trailing average earnings of asset
i
Copyright © EDHEC 2021 - EDHECinfra®, Scientific Infra® and TICCS® are trademarks of EDHEC Business School.