Question: 6. Discuss what features may cause the fundamental PIE ratio to be inaccurate. The the fundamental PIE ratio may be inaccurate due to an

6. Discuss what features may cause the fundamental PIE ratio to be

6. Discuss what features may cause the fundamental PIE ratio to be inaccurate. The the fundamental PIE ratio may be inaccurate due to an incorrect estimate of the growth rate; an incorrect estimate of the firm's beta coefficient or an incorrect estimate of the future payout ratio. In all, the fundamental PIE ratio model assumes the input values to be fixed. In reality however, this assumption is highly questionable.

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