P/E RATIO Definition

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P/E RATIO (PRICE/EARNINGS RATIO) is a stock analysis statistic in which the current price of a stock (todays last sale price) is divided by the reported actual (or sometimes projected, which would be forecast) earnings per share of the issuing firm; it is also called the "multiple".

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PREMISE OF VALUE is an assumption regarding the most likely set of transactional circumstances that may be applicable to the subject valuation; e.g. going concern, liquidation.

SALES JOURNAL is a record containing a chronological listing of credit sales.

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