maz

Bed Bath to Go Above and Beyond - Barron's

How can you back out $4 a share in cash to lower the P/E?

It doesn't make sense - cash is a balance sheet item and earnings - the 'E' in P/E - are an accrual item on the income statement.

What you are saying is that the $4 per share in cash and zero debt has no effect on the share price. Don't know about you but zero debt cash rich companies are worth a premium to me.