Attribute Bias

Attribute Bias - An attribute bias is the tendency of a valuation model that attempts to estimate the present value of all future payments from dividends to that of preferred stocks, which have alike characteristics and might include high dividend returns, high book values, lower P/E ratios, and other similar traits. These attributes can be useful when attempting to measure values that are rising or falling on stocks, which normally run along the similar value as preferred stocks. Some traders find these values very useful.