Companies with significant intangible assets on their balance sheets may receive a slightly lower P/E ratio versus companies with Difficult assets.

Question

Quizplus · Accepted Answer

This is because intangible assets such as patents, brands, and goodwill are more difficult to value and may not have a clear market price. This uncertainty can lead to investor skepticism and a lower P/E ratio for companies with significant intangible assets.

Companies with Significant Intangible Assets on Their Balance Sheets May