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.
Related information about franchise factor:
- Franchise Factor Definition | Investopedia
For example, a franchise factor of 3 would indicate that the P/E ratio of a company would increase by three units for every unit of growth in the company's book ...
- Franchise P/E Definition | Investopedia
... (the franchise factor) relative to the size of the opportunity (the growth factor). Franchise Factor (FF) x Growth Factor (G) = (1/k - 1/ROE) x g/(k-g), where: ...
- What is franchise factor? definition and meaning
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 ...
- The Franchise Factor P/E - Financial Education - Everything You ...
Sep 5, 2007 ... The concept of the franchise factor is similar to that of residual income. It is a recognition that the value of a firm consists of its current value and ...
- Franchise Factor: Definition from Answers.com
Franchise Factor The measurement of the impact on a company's price-earnings (P/E) ratio per unit growth in new investment.
- Inside the P/E Ratio: The Franchise Factor - JStor
factors-(1) a Franchise Factor that represents the PIE impact of new investments at ... The Franchise Factor depends on the return available on new investments.
- The Franchise Factor in the Rise of the Labour Party - JStor
The franchise factor in the rise of the. Labour Party. THE literature on the rise and fall of the Liberal Party is voluminous and inconclusive. We believe it is ...
- Franchise Value and the Price/Earnings Ratio - CFA Institute ...
A Franchise Factor Model for Spread Banking ... The Franchise Factor for Leveraged Firms ... Appendix C. A Franchise Factor Formula for the Base P/E ...