Skip to main content
Message Font: Serif | Sans-Serif
No. of Recommendations: 0
Greetings Keith,

I think it generally refers to the P/E of the overall market, e.g. that of the Dow Jones Wilshire 5000 index, though it could be a little more specific like that of that segment of the market, e.g. the P/E of S & P 500 stocks or tech stocks. At least that would be how I'd interpret it though I would ask the poster if they have a specific meaning they meant for someone to infer or if there are multiple interpretations that should make sense.

The main Price multiples I'm aware of are Price/Earnings, Price/Book Value, Price/Cash Flow, Price/Free Cash Flow though there may be others and there is the question of which market is meant since the term "market multiple" does raise the question of which market and which multiple though I imagine this is where you may be confused as well as others possibly.

Print the post  


What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.