Session 12: Equity Investments: Valuation Models Reading 42: Market-Based Valuation: Price and Enterprise Value Multiples
LOS e: Calculate and interpret each price multiple and dividend yield.
The trailing price-to-earnings (P/E) ratio is defined as:
A) |
price to most recent earnings. | |
B) |
price to next period's expected earnings. | |
C) |
the average P/E over the last five years. | |
The trailing P/E ratio is price to most recent realized earnings. |