Franchise Factor

Business, Legal & Accounting Glossary

Definition: Franchise Factor


Franchise Factor


Full Definition of Franchise Factor


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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Definition Sources


Definitions for Franchise Factor are sourced/syndicated and enhanced from:

  • A Dictionary of Economics (Oxford Quick Reference)
  • Oxford Dictionary Of Accounting
  • Oxford Dictionary Of Business & Management

This glossary post was last updated: 20th November, 2021 | 0 Views.