Studies Have Shown That 50-70% of the Variability in PE

question 12

Short Answer

Studies have shown that 50-70% of the variability in PE ratios across firms comes from ________ and _______.

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Definitions:

Period

A specific duration of time used for financial reporting and analysis, typically a fiscal quarter or year.

Cost of Goods Sold

Direct expenditures linked to the creation of goods sold by a business.

Calculate

To determine something mathematically, such as a sum, total, or other numeric value.

Period

A length of time in financial accounting, often used to report earnings or track expenses, such as a quarter or fiscal year.