PRICE EARNINGS MULTIPLE Definition

Bookmark and Share

PRICE EARNINGS MULTIPLE: The price-earnings ratio (P/E) is simply the price of a companys share of common stock in the public market divided by its earnings per share. Multiply this multiple by the net income and you will have a value for the business. If the business has no income, there is no valuation. If the common stock in not publicly traded, valuation of the stock is purely subjective. This may not be the best method, but can provide a benchmark valuation.

Learn new Accounting Terms

X or XD is a symbol used in newspapers to indicate that a stock is trading ex-dividend, i.e., without dividend. The x symbol is also used in bond tables to signify without interest.

PEACHTREE is commercial accounting software developed and owned by Sage Software.

Suggest a Term

Enter Search Term

Enter a term, then click the entry you would like to view.