This occurs when, although earnings are strong, the price of a particular stock does not move up - and in some cases, it can even go down. This results in a reduction in the P/E ratio for the stock, even though there is nothing wrong with the underlying company. Therefore, some feel that this compression can call the company's valuation into question.
Related information about multiple compression:
- Multiple Compression Definition | Investopedia
The effect that arises when a stock trades at a certain multiple and, while earnings may be strong, the stock price doesn't move up (or even goes down).
- An Era of Multiple Compression: A Scenario Analysis and How to ...
Aug 31, 2010 ... In my view, the future of the stock market is not very bright as we may face a decade of multiple compression. Whenever the market pulled back ...
- Multiple Compression - Financial Dictionary - The Free Dictionary
A situation in which a publicly-traded company's share price does not rise, or may fall, even on strong earnings. That is, multiple compression occurs when the ...
- Symptoms of Multiple Vertebral Compression Fractures
In general, crowding of internal organs can be a serious side effect of multiple compression fractures. For example, in severe cases, the trunk of the body may be ...
- What's Happening to Google's Stock? Multiple Compression ...
Mar 4, 2008 ... Google's stock multiple is compressing, a phenomenon that happens to every great growth stock at some point. The re-valuation is likely ...
- What Is Multiple Compression?
Brief and Straightforward Guide: What Is Multiple Compression?
- What is multiple compression? definition and meaning
Definition of multiple compression: This occurs when, although earnings are strong, the price of a particular stock does not move up - and in some cases, it can ...
- Multiple compression dictionaries for replication source tables
You can combine the DATA CAPTURE CHANGES clause with the COMPRESS YES STATIC or COMPRESS YES ADAPTIVE option for the CREATE TABLE and ...