Iuri Colares

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Why should this matter when the sample is large? The fact that the firms that are taken out of the sample are the firms losing money implies that the average PE ratio for the group will be biased because of the elimination of these firms. As a general rule, you should be skeptical about any multiple that results in a significant reduction in the number of firms being analyzed.
The Little Book of Valuation: How to Value a Company, Pick a Stock and Profit (Little Books. Big Profits)
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