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Bridge over ocean
1 January 1945 Financial Analysts Journal Volume 1, Issue 1

A Study of Factors Influencing Price–Earnings Ratios of Utility Common Stocks

  1. Harold H. Young

The study reported here covered the P/Es of 60 companies as of 15 November 1945. Factors found not be influential were size and location (with the exception of New England companies, which all had high P/Es). The P/E was found to vary with debt-to-equity ratio, percentage of gross operating revenues remaining for common stock, and especially, percentage of common stock earnings paid out as dividends.

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