For today, we decided to bring you an overview of the cash-adjusted P/E of some of the largest Croatian companies.

Cash adjusted P/E ratio is meant to show the value of a company’s operating business when we take out the net cash the company has, in order to provide a more clear view. This will single out companies that have a lot of cash at hand, and show how much of an impact that cash has on the P/E ratios.

Among the observed companies, Adris’ cash position has the largest impact out of all the observed companies, with P/E changing from 18.1x to 10x after the adjustment. In the 2nd place, we have HT, which has the 2nd largest cash position (HRK 2.8bn), and the 3rd biggest P/E change after adjustment (21x to 14.7x) among the observed companies.

Comparison of Selected Companies P/E and Cash Adjusted P/E