Measuring the price-earnings ratio of share is important for determining the expected holding-period return which can be used as a basis for valuing any portfolio.

By subjecting the holding period returns to various alternative benchmarks,a tendency of underperformance is found to be strikingly evident on that market within a period of one to five years after the initial public offering(IPO).

The losses stem from the cash flow and convenience value ratio between decision points, which changes the evolutionary routine of real assets value thereby affecting the option value and optimum time for decisions.