P/E: consolidated or standalone what give a true picture

P/E: consolidated or standalone what give a true picture....

 

It has to be consolidated because you are paying price for consolidated Co and so earnings have to be for consolidated co

 

If standalone gives the picture of their most valuable business then it is very important but if all subsidiaries hold almost same value then Consolidated. But in general, I will give more importance to the Consolidated.

 

If you are paying the price for the consolidated basis of the business then you must consider the p/e of consolidated only. Because if you go for the standalone and some of their subsidiaries do anything wrong in their business then it will reflect on the overall business.