Tag

multiples

2 explainers tagged “multiples”.

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Articles

Beginner · 35/100

The P/E Ratio: What It Really Tells You

The price-to-earnings ratio is the most quoted and most misused number in investing. Learn what P/E measures, trailing vs. forward, why a low P/E isn't automatically cheap, and how to compare it fairly.

earnings multiples P/E ratio valuation
1 min read
Intermediate · 55/100

Enterprise Value and EV Multiples: Valuing the Whole Business

Market cap prices the shares; enterprise value prices the whole business, debt included. Learn what EV is, how EV/EBITDA, EV/EBIT and EV/Sales work, and why they beat the P/E ratio for comparing companies with different debt.

EBITDA enterprise value EV/EBIT EV/EBITDA
2 min read