Business, Legal & Accounting Glossary
Measure of the impact new investments have on the price-earnings ratio of a company. This factor is determined as being the product of annual investment returns in excess of market returns, as well as the time period of those returns. High franchise factors typically also indicate high price-earnings ratios in comparison to a company’s book value.
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This glossary post was last updated: 20th November, 2021 | 0 Views.