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Price/earnings multiple approach

• A technique to estimate the firm's share value; calculated by multiplying the firm's expected earnings per share (EPS) by the average price/earnings (P/E) ratio.

 
 

Follow this link for all the terms related to price.

 
 Embedded terms in definition
 Average price
Average
Earnings per share
Earnings
Share
 
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<< Price/book ratio Price/earnings p/e ratio >>

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