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

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.

Publication Details

Journal
Zenodo (CERN European Organization for Nuclear Research)
Published
2025-07-12
DOI
https://doi.org/10.5281/zenodo.15868073
Primary Topic
Financial Reporting and Valuation Research
Type
article
Field-Weighted Citation Impact
0.00
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article

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

Zenodo (CERN European Organization for Nuclear Research)
Financial Reporting and Valuation Research
article

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

article en

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.

Zenodo (CERN European Organization for Nuclear Research)
Decent work and economic growth
Openalex Percentile: Top 39%
Financial Reporting and Valuation Research
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Call to Action on Wall Street: Remove the Blinders and Revise your Metrics · Zenodo (CERN European Organization for Nuclear Research) (2025) | TGRS Research Map | TGRS