Price to Earnings Less Cash
Price to earnings (P/E) ratio, less cash.
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?"
YCharts calculates this formula as:
P/E less cash: EPS of a stock - cash per share