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Related Concepts
The P/E is calculated primarily for common shares, not for preferred shares. The appropriate calculation for preferreds is the preferred dividend coverage ratio.
A related concept is the "PEG ratio". This is the P/E ratio adjusted by a growth coefficient. It is sometimes used in high growth industries and new ventures. Its use is controversial.
Another practice, which is not mainstream, based on behavioral finance, is to take market behavior parameters, among which the stock image, as factors playing a part in the level and evolution of the P/E.
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The P/E can be applied not only to shares, but to other assets also. Thus the P/E, comparing Price to Rental Incoming for housing, is an important measure in determining the existence or absence of Property bubbles.
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