- In assessing BTP’s trailing P/E, be sure to adjust for its counter-cyclical property called the Molodovsky effect.
BTP is a cyclical company. Empirically, P/Es for cyclical companies are often highly volatile over a cycle even without any change in business prospects. High P/Es on depressed earnings per share (EPS) at the bottom of the cycle and low P/Es on unusually high EPS at the top of the cycle reflect the countercyclical property of P/Es known as the Molodovsky effect.
可以帮忙解释答案的这一句话吗多谢！
