earnings multiple


Also found in: Dictionary.
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
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved

earnings multiple

See price-earnings ratio.
Wall Street Words: An A to Z Guide to Investment Terms for Today's Investor by David L. Scott. Copyright © 2003 by Houghton Mifflin Company. Published by Houghton Mifflin Company. All rights reserved. All rights reserved.
Mentioned in ?
References in periodicals archive ?
The price to earnings multiple compares a stock's price to its forward earnings per share.
One year after Egypt floated its currency, foreign investors are back to local stock market
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.
GCC IPOS in the spotlight
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.
Effects of US monetary policy on UAE investors
The shares are trading on a prospective earnings multiple of 7.6 times.
Shares in defence firm QinetiQ look set to bounce back; SHARE PRICES MARKETS
In a research note, it says at the current market price of $0.380, the stock is trading at a price earnings multiple of 6.70 times on its last year's earnings and at a price to book value multiple of 0.86 times.
TAIB revises AUB outlook
Cardinal's medical products business has been the shining part of the company, and the spinoff could garner an earnings multiple closer to competitors like Baxter International Inc.
Cardinal Health Inc. (Dublin OH) said that it's going to spin off its clinical and medical products businesses--infusion pumps, ventilators, surgical instruments, and the like
A common multiple of earnings is a price to earnings multiple, or P/E ratio.
What's your company worth?
The resulting value estimate from the income approach using market comparables to develop the earnings multiple is $24 million ($2.4 million x 10).
The benefits of hybrid valuation models
The model assumes that a firm's equity value equals an earnings multiple times permanent earnings, where risk is one of many determinants of the earnings multiple.
Fair value accounting and regulatory capital requirements
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%"
Analysts rate Redhook a "strong buy." (Redhook Ale Brewery)
The price of a company's stock is related to several factors that are summarized in two numbers, earnings per share, E, and a price earnings multiple, M.
A new look at financial insurance products
This vulnerability of the health care group may be related to the high price earnings multiple. Several stocks were priced at over 20 times expected 1992 earnings earlier in the year.
Nursing homes and Wall Street

Financial browser ?
Full browser ?