abh3vt
I believe these PEs are based on the trailing twelve months actual GAAP reported earnings per share. The majority of these trailing twelve month numbers are as of the 3rd q 2017. I'm guessing a very small % have reported earnings since the passage of the tax bill.
Wall street loves to play the manufactured earnings game, and that is what seems to matter in a bull market, but I put more faith in GAAP for reflecting the true earnings of a company then I do "adjusted" eps. Amortization is based on a real cash payment up front. GAAP just attempts to match the expense to the periods that benefit. As to one time items, if you look at most companies over time, one time events have a recurring nature. Thus, to ignore them overstates true earnings.
I've come around to the argument that stock based compensation is a legitimate expense that shouldn't be backed out of earnings for the purpose of valuing a company.
I wish I could use the wall street method for my golf scores. If hitting the ball out of bounds or behind a tree could be defined as an unusual event then I'd look like a better golfer then I really am ;).
