A ratio of a stock's price to some measure of share value. The formula for calculation is Price Multiple = Share Price / Metric, where the metric is some measure of share value, like earnings, cash flow, sales, or assets. Typically used during a valuation as an indicator of the company's attractiveness as an investment.
Related information about price multiple:
- Price Multiple Definition | Investopedia
Any ratio that uses the share price of a company in conjunction with some specific per-share financial metric in order to evaluate a company's financial situation.
- Price-Earnings Ratio (P/E Ratio) Definition | Investopedia
A third variation uses the sum of the last two actual quarters and the estimates of the next two quarters. Also sometimes known as "price multiple" or "earnings ...
- Price Multiple Definition, Example & Formula | InvestingAnswers
We explain the definition of Price Multiple, provide a clear example of the formula and explain why it's an important concept in business, finance & investing.
- Price Multiple: Definition from Answers.com
Price Multiple Any ratio that uses the share price of a company in conjunction with some specific per-share financial metric in order to evaluate.
- What Is Price Multiple?
Brief and Straightforward Guide: What Is Price Multiple?
- Chapter 4 MARKET-BASED VALUATION: PRICE MULTIPLES - Etsu
A price multiple summarizes in a single number a valuation relationship to a familiar ... The method of comparables involves using a price multiple to evaluate ...
- De-Mystifying the Price Multiple - WHM Capital Advisors
business with $500,000 in earnings and an industry average price multiple ... Many shareholders and valuators think that the earnings stream of a price multiple ...
- Price Multiples P/E P/B (Price to Book) - BDNews 24
A price multiple/valuation ratio of a company's current share price compared to its per – share earnings, measurement of earning power. The P/E ratio can ...