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  "notes": "This slide acts as a primer on P/E ratios, discussing accounting adjustments and the impact of capital structure.",
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      "kind": "callout",
      "text": "Gearing will affect the PE multiple",
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      "text": "Use earnings before exceptional items and goodwill amortisation",
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      "text": "Equity multiples reflect residual claims",
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      "text": "The PE ratio is the most commonly used equity multiple. Earnings are subject to different accounting policies. Price to earnings multiples cannot be used when earnings are negative. Use when earnings are representative. Use for comparisons with similar accounting policies.",
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      "text": "Definition: Current market capitalisation/net income attributable to common shareholders or alternatively, price per share/attributable earnings per share.",
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      "text": "Formula: Market cap / Net income = ROE - g / ROE x (COE - g)",
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      "text": "An equity multiple, as the name suggests, is the expression of the market value of equityholders’ stake in an enterprise, relative to a key statistic relating to that value.",
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      "text": "Section 5 Equity Multiples",
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