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Reading 42: Market-Based Valuation: Price and Enterprise Val

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.

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