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| *Ostroff, Fair and Company>>>Investing |
People! can u show me how it determines the stock price or can it ? |
"Valuation Multiply" is bugging me, can it be exemplified ? Please just don't answer for points, i'm here to learn, thanx The "valuation multiple" (or "price to earning ratio") is just the ratio between a stocks price and the earnings per share. It's only real use is when comparing a company with one of its peers. This will tell you whether it is over- or under-priced, comparatively, but will not tell you why! |
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