A term that measures some aspect of a company's financial well-being, determined by dividing one metric by another metric. The metric in the numerator is typically larger than the one in the denominator, because the top metric is usually supposed to be many times larger than the bottom metric.

Calculated as:


For example, the term multiple can be used to show how much investors are willing to pay per dollar of earnings, as computed by the P/E ratio. Suppose you were analyzing a stock with $2 of earnings per share (EPS) that is trading at $20 — this stock would have a P/E of 10. This means investors are willing to pay a multiple of 10 times the current EPS for the stock.

Investment dictionary. . 2012.

Look at other dictionaries:

  • multiple — [ myltipl ] adj. et n. m. • 1572 math.; multiplice 1380; lat. multiplex 1 ♦ Qui n est pas simple. Qui est composé de plusieurs éléments de nature différente, ou qui se manifeste sous des formes différentes. ⇒ divers. « Ce vaste et multiple monde… …   Encyclopédie Universelle

  • Multiple — Mul ti*ple, a. [Cf. F. multiple, and E. quadruple, and multiply.] Containing more than once, or more than one; consisting of more than one; manifold; repeated many times; having several, or many, parts. [1913 Webster] {Law of multiple proportion} …   The Collaborative International Dictionary of English

  • múltiple — adjetivo 1. Que encierra complejidad, diversidad o variedad, o se compone de elementos de diferente naturaleza: actividad múltiple, aspecto múltiple. Tengo una rotura múltiple. La bomba es una trampa múltiple. 2. (en plural; antepuesto /… …   Diccionario Salamanca de la Lengua Española

  • Multiple — Mul ti*ple, n. (Math.) A quantity containing another quantity an integral number of times without a remainder. [1913 Webster] Note: A {common multiple} of two or more numbers contains each of them a number of times exactly; thus, 24 is a common… …   The Collaborative International Dictionary of English

  • multiple — I adjective abundant, aggregate, ample, assorted, composed of several elements, considerable, different, divergent, diverse, diversified, generous, innumerable, many, miscellaneous, mixed, more than one, multifarious, multifold, multiplex,… …   Law dictionary

  • múltiple — (Del b. lat. multĭplus, con la t. de doble). 1. adj. Vario, de muchas maneras, en oposición a simple. 2. muchos (ǁ abundantes). De esta novela se han hecho múltiples ediciones. ☛ V. eco múltiple, enlace múltiple, esclerosis múltiple, estrella… …   Diccionario de la lengua española

  • multiple — (adj.) 1640s, involving many parts, from Fr. multiple (14c.), from L.L. multiplus manifold, from L. multi many, much (see MULTI (Cf. multi )) + plus fold, (see FOLD (Cf. fold)). The noun is from 1680s, in mathematics, from the adjective. Multiple …   Etymology dictionary

  • múltiple — de muchas maneras o en muchas ocasiones; que ocurre en varias partes del cuerpo CIE 10 [véase] Diccionario ilustrado de Términos Médicos.. Alvaro Galiano. 2010 …   Diccionario médico

  • Multiple —   [ mʌltɪpl, englisch] das, s/ s, in der zeitgenössischen Kunst Bezeichnung für ein Kunstobjekt, das in mehreren Exemplaren hergestellt wurde.   Literatur:   M., bearb. v. R. Block u. a., Ausst. Kat. (1974);   Das Jh. des M., hg. v. Z. Felix,… …   Universal-Lexikon

  • multiple — / multifarious [adj] diversified, miscellaneous assorted, collective, conglomerate, different, diverse, diversiform, heterogeneous, indiscriminate, legion, manifold, many, mixed, motley, multiform, multiplex, multitudinal, multitudinous, numerous …   New thesaurus

  • multiple — Multiple. adj. Terme d Arithmetique. Il se dit en parlant d un nombre qui en contient un autre plusieurs fois sans residu. Le nombre de quinze est multiple de trois & de cinq …   Dictionnaire de l'Académie française

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