• Financial History – A longer operating history gets a company a higher PE compared to unknown businesses.
  
  
• Barriers to Entry – Companies that operate in Industries having barriers to entry are given a higher multiple then the ones operating in an environment having no barrier to entry.
  
  
• RoE and RoCE – A higher RoCE and RoE indicates operating efficiency and generates a higher multiple compared to companies having lower RoE and RoCE.
  
  
• Free Cash Generation – Businesses generating a greater amount of free cash have higher PE's compared to cash guzzling operations.
  
  
• Critical Mass and Size – Larger companies having reached a critical mass get a higher PE compared to their smaller peers.
  
  
• Corporate Governance – An honest Management adhering to ethics, morality and following clean and conservative accounting systems will have a higher PE.  
  
  
• Dividend Policy – Market loves dividends and companies that give out large dividends get a higher PE.
  
  
• Price Leadership – Corporations that have are price and influence the market price of the product gets higher PE.
  
  
• Investor communication – Companies that embark on providing a great deal of information to their shareholders and are bid up to higher multiples when compared to the companies that do not provide adequate information to investors.
  
  
• Index component – Companies that are a part of the Index are given a higher multiple compared to companies that do not form part of the index.
  
  
• Trading volume – Liquid stocks get higher PE compared to the illiquid ones.