Price to Earnings Less Cash TTMView Financial Glossary Index
Price to earnings (P/E) ratio less cash per share.
Let's say a company has significant cash. By purchasing a stake, you are purchasing two components, the company's business operational assets and its cash. Subtracting cash per share from P/E answers the question, "What is the adjusted P/E ratio of the operational assets without the cash?"
For more information on evaluating valuation multiples similar to this, please see our original white paper research : Making Sense Of Valuation Multiples.
YCharts calculates this formula as the EPS of a stock without a stock's cash per share.