Work

Call to Action on Wall Street: Remove the Blinders and Revise your Metrics

Year: 2025

Type: article

Abstract: Revise your valuation metrics: The P/E ratio gives a static snapshot of a market that is dynamic and uncertain. An alternative is the Potential Payback Period (PPP), which measures how long it takes for the sum of discounted future earnings to match the current share price.The PPP mathematically reduces to the P/E when earnings growth and interest rates are ignored.The PPP is to the P/E what a video is to a photo. Only the PPP captures the earning power of a company over time, which is the main determinant of its share price.

Source: Zenodo (CERN European Organization for Nuclear Research)

DOI: 10.5281/zenodo.15868072

Author: Sam, Rainsy

Language: English

Topic: Financial Reporting and Valuation Research

Subfield: Strategy and Management

Field: Business, Management and Accounting

Domain: Social Sciences

Open Access status: green

OpenAlex ID: W6949889398

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