Answer: Price-to-sales (P/S) ratio

## Explanation The **Price-to-Sales (P/S) ratio** is the least prone to distortion or manipulation in this scenario because: - **P/E ratio**: Highly susceptible to manipulation since earnings can be distorted through aggressive capitalization of R&D expenses and operating expense manipulation - **P/B ratio**: Can be affected by asset valuation and capitalization policies - **P/S ratio**: Sales/revenue is generally harder to manipulate than earnings or book value, making P/S the most reliable multiple when earnings quality is questionable When a company aggressively capitalizes R&D expenses, it artificially inflates earnings and assets while understating expenses. Sales figures are typically less affected by such accounting manipulations, making P/S the most robust multiple in this situation.

Author: LeetQuiz Editorial Team