Accounting / July 19, 2018 / Pearl Bailey
It is possible to invest based on the PE of an individual stock, but most people look at an overall PE ratio for the market. Many people say the stock market is overvalued when the PE ratio of the market is above average. What exactly is average? Here are a few historical high and low points in the market that will give you some insight into normal, abnormal, and average PE ratios.
Asset retirement obligation involves the retirement of a tangible, long-lived asset that depends on a future event beyond the control an obligated party. It is an accounting rule and legal obligation meant to account for the cost of returning a piece of property to its original condition. Asset retirement obligation (ARO) is an essential part of producing fair and accurate financial statements so those viewing them can have a better idea of a company's obligations, and therefore its overall value.
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