earnings multiple


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Related to earnings multiple: Penalty Bid

Price-Earnings Ratio

The price of a security per share at a given time divided by its annual earnings per share. Often, the earnings used are trailing 12 month earnings, but some analysts use other forms. The P/E ratio is a way to help determine a security's stock valuation, that is, the fair value of a stock in a perfect market. It is also a measure of expected, but not realized, growth. Companies expected to announce higher earnings usually have a higher P/E ratio, while companies expected to announce lower earnings usually have a lower P/E ratio. See also: PEG

earnings multiple

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The price to earnings multiple compares a stock's price to its forward earnings per share.
The trailing earnings multiple at offer was in the low-to-mid teens and at a discount when compared to Kuwait's Index multiple of 16x.
Over 60 per cent of the price gains seen in local stock markets over the last year are the result of earnings multiple expansion -- meaning local markets would suffer in an environment when earnings multiples are contracting.
The shares are trading on a prospective earnings multiple of 7.
A common multiple of earnings is a price to earnings multiple, or P/E ratio.
The resulting value estimate from the income approach using market comparables to develop the earnings multiple is $24 million ($2.
The dispersion of each of the firm-specific variables increases between periods, suggesting that earnings multiple results are not driven by firms becoming generally more similar over the sample period.
Regarding its "strong buy" assessment, Jaffray said "We believe that as investors regain confidence in Redhook's strategy and ability to execute, the earnings multiple of Redhook shares should expand to a level more in line with our long-term earnings growth estimate of 30%"
The price earnings multiple times earnings per share yields the price of the firm's stock, P = M x E.
This vulnerability of the health care group may be related to the high price earnings multiple.
The average price-earnings ratio (PER) or price earnings multiple for the 30-component stocks of the PSEi has now fallen to 18.
The S&P 500 currently trades on a forward price-to-earnings multiple of around 15x, slightly ahead of its 10-year average of 14x, although other commentators point out that - looking at the nine previous economic cycles - the median peak forecast earnings multiple is 15x.