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gorbec1

03/19/23 4:59 PM

#208692 RE: boobb2 #208691

I know p e I got confused with multiples But now I remember thanks.

For example, a multiple can be used to show how much investors are willing to pay per dollar of earnings, as computed by the price-to-earnings (P/E) ratio. Assume you are analyzing a stock with $2 of earnings per share (EPS), which is trading at $20. This stock has a P/E of 10. This means investors are willing to pay a multiple of 10 times the