Investopedia / Joules Garcia The harmonic mean is a numerical average used in finance to average multiples like the price-to-earnings ratio. It is calculated by dividing the number of observations ...

with the other two classical Pythagorean means being the geometric mean (GM) and harmonic mean (HM). The question that many start off with, is what the GM and AM are and why you’d want to use ...

such as the geometric mean and harmonic mean, which comes into play in certain situations in finance and investing. Another example is the trimmed mean, used when calculating economic data such as ...