P/E ratio formula is listed above correctly, however, earnings is earnings per share, not revenue. So the parent's market valuation rationale is whacky. Side n

P/E ratio formula is listed above correctly, however, earnings is earnings per share, not revenue. So the parent's market valuation rationale is whacky. Side note - Go read about Japan's lost decade and you'll see how dangerously close our (US) current speculative investing environment is to theirs before it fell.