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

Question

Quizplus · Accepted Answer

This is because investors may perceive companies with significant intangible assets to be riskier as these assets can be difficult to value and may not have a tangible market value. As a result, investors may be more cautious in assigning a high P/E ratio to these companies.

Companies with Significant Intangible Assets on Their Balance Sheets May