price-to-innovation-adjusted earnings


The difference between a company's share price and profitability, factoring in research and development (R & D). The formula is highly effective in determining the overall performance and worth of a company that operates in an industry largely driven by R & D, such as computer companies and drug manufacturers.
The equation for price-to-innovation-adjusted earnings is: P / E + R

Where: P = current price (per share), E = earnings (per share), R = R & D (per share)
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