Some common price multiples are the price-to-earnings (P/E) ratio, the price-to-book (P/B) ratio, and the price-to-sales (P/S) ratio. These ratios are used in conjunction with other fundamental metrics, such as EBIDTA, in order to give analysts and investors a quick initial impression of whether a company would make a good viable investment. However, because these multiples are very simplistic, they should not be the only measure of assessing a potential investment.
Investment dictionary. Academic. 2012.
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Price-Earnings Ratio - P/E Ratio — A valuation ratio of a company s current share price compared to its per share earnings. Calculated as: Market Value per Share Earnings per Share (EPS) For example, if a company is currently trading at $43 a share and earnings over the last 12… … Investment dictionary
Price discrimination — or price differentiation exists when sales of identical goods or services are transacted at different prices from the same provider. In a theoretical market with perfect information, perfect substitutes, and no transaction costs or… … Wikipedia
price-earnings multiple — UK US noun [C] ► ACCOUNTING, FINANCE the price of a company s shares in relation to earnings per share (= a company s profits over a particular period divided by the number of its shares): »The price earnings multiple is just one possible guide… … Financial and business terms
price-earnings multiple — price earnings ratio UK / US or price earnings multiple UK / US noun [countable] Word forms price earnings ratio : singular price earnings ratio plural price earnings ratios business a way of measuring the value of a company s stock by dividing… … English dictionary
Price gouging — is a pejorative term for a seller pricing much higher than is considered reasonable or fair. In precise, legal usage, it is the name of a felony that applies in some of the United States only during civil emergencies. In less precise usage, it… … Wikipedia
Multiple basing points — is a method of regional pricing in milk marketing orders that would allow more than one basing point, or surplus area, to be used. Surplus areas are administratively defined as areas with low Class I utilization, meaning that a relatively small… … Wikipedia
multiple store — ➔ store1 * * * multiple store UK US noun [C] COMMERCE ► a MULTIPLE(Cf. ↑multiple): »Consumers who patronise multiple stores tend to be price sensitive … Financial and business terms
price-earnings ratio — UK / US or price earnings multiple UK / US noun [countable] Word forms price earnings ratio : singular price earnings ratio plural price earnings ratios business a way of measuring the value of a company s stock by dividing the price for each… … English dictionary
Price earning ratio — Pour les articles homonymes, voir PER. Le Price Earning Ratio plus connu sous l abréviation « PER » est une expression boursière tirée de l anglais (P/E ou Price/Earnings Ratio) signifiant « coefficient de capitalisation des… … Wikipédia en Français
price-earnings ratio — price earnings ,ratio or ,price earnings ,multiple noun count BUSINESS a way of measuring the value of a company s STOCK by dividing the price for each SHARE by what the company earns for it … Usage of the words and phrases in modern English