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I'm curious, how does the all-stock acquisition that closed 2.5 years ago affect their trailing P/E but not their forward P/E ?
by drexlspivey 2y ago
I'm curious, how does the all-stock acquisition that closed 2.5 years ago affect their trailing P/E but not their forward P/E ?
- staticman2 2y agoDifferent accounting methods from what I gather. The acquisition is being accounted for over a 5 year period for the trailing p/e but not being included in the forward p/e over this 5 year period. This really shows how p/e is not a great metric in a vacuum.
- lostmsu 2y agoThank you all guys for the explanation. I was very puzzled seeing AMD p/e as a complete dilettante in finance reporting.