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

See price-earnings ratio.

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price-earnings ratio

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.

Shares in defence firm QinetiQ look set to bounce back; SHARE PRICES MARKETS

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.

The benefits of hybrid valuation models

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.

Empirical evidence on the evolution of international earnings

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 earnings multiple times earnings per share yields the price of the firm's stock, P = M x E.

A new look at financial insurance products

This vulnerability of the health care group may be related to the high price earnings multiple.

Nursing homes and Wall Street

The average price-earnings ratio (PER) or price earnings multiple for the 30-component stocks of the PSEi has now fallen to 18.

Market repricing

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.