Explain three potential flaws inherent in the measurement

Reference no: EM13902402

THE PRICE-EARNINGS RATIO. In practice, it is common to observe price- earnings ratios measured as current period price divided by trailing twelve months (or most recent annual) earnings per share. Identify and explain three potential flaws inherent in this measurement of the price-earnings ratio as a valuation multiple.

Reference no: EM13902402

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