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There are 20 firms within the same industry. One firm has extremely large P/E ratio of 1,000, another has negative P/E ratio. When consider
There are 20 firms within the same industry. One firm has extremely large P/E ratio of 1,000, another has negative P/E ratio. When consider using peer company P/E multiples to evaluate a firms, which of the following statement is inaccurate? You can discard the firm with negative P/E You can discard the firm with 1,000 P/E if it is caused by one-time expenses You can use the median P/E ratio of the 20 comparable firms for valuation You cannot discard the firm with negative P/E if it is caused by one-time expenses
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