The Articulation of Price-Earnings Ratios and Market-to-Book Ratios and the Evaluation of Growth
解释市盈率与市净率如何关联，以及净资产收益率在决定这两个比率中的作用，帮助理解这些常用指标的含义。
This paper interprets the price-earnings ratio (PIE) and the marketto-book ratio (PIB) and describes how they articulate. It also describes the role of book rate-of-return on equity (the ratio of their denominators) in the determination of the ratios and the relation between them. Although both are reported regularly, there is not a common understanding of these issues. For example, the PIE ratio has been interpreted as an earnings growth indicator (Cragg and Malkiel [1982] and Litzenberger and Rao [1971]), a risk measure (Ball [1978]), and an earnings capitalization rate (Graham, Dodd, and Cottle [1962], Boatsman and Baskin [1981], and Alford [1992]). Derivations based on the Gordon [1962] model describe it as determined by return on equity. Beaver and Morse [1978] show that this ratio indicates transitory earnings (the effect from Molodovsky [1953]). It has also been interpreted as an indicator of mispriced stocks (Basu [1977] and Jaffee, Keim, and Westerfield [1989]) and as a product of accounting principles (Craig, Johnson, and Joy [1987]). The P/B ratio received less academic attention until Fama and French [1992]. Traditionally, it was interpreted as indicating expected return on equity (see, for example, Graham, Dodd, and Cottle [1962]). This interpretation is given expression in the standard formula reconciling price to book value (in Preinreich [1938], Edwards and Bell [1961], and Peasnell [1982], for example). Like PIE, P/B has been modeled as a growth