The Motley Fool Discussion Boards

Previous Page

Learning to Invest / Terms, Definitions, & Jargon


Subject:  Re: Fool terminology/glossary Date:  12/3/2004  4:40 PM
Author:  Byrne2000 Number:  1462 of 2244

Mutliples usually are referring to a valuation metric when trying to analyze the relative value of a company.

Mulitple is usually just another term for price/earnings ratio (P/E ratio or PE) which measures the value of a company's stock determined by share price divided by earnings per share (EPS).

Multiples simply reflect how much investors are willing to pay for a companys stock per every dollar of earnings, sales, EBITDA, etc that is reported.
Copyright 1996-2021 trademark and the "Fool" logo is a trademark of The Motley Fool, Inc. Contact Us