If there is a satisfactory explanation for the difference then the estimate may cease to be
useful as a yardstick with which to measure reasonableness.
Not exact matches
On that same note,
as you read this introductory article and discover how
useful the P / E ratio can be, keep in mind you can't always rely on price - to - earnings ratios
as the be-all-end-all
yardstick in determining whether a company's stock is expensive.
While manufacturers» official figures are often hard to match in the real world, they serve
as a
useful yardstick when comparing cars.
Benchmarking,
as it's called, is only
useful if you compare your performance with an appropriate
yardstick.