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Forum Archive Index - September 2002

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[sharechat] Price earnings multiple?


From: Holden Glova <dsafari@paradise.net.nz>
Date: Tue, 24 Sep 2002 21:23:12 +1200


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Hello all,

What does a price earnings multiple mean? How can I calculate one? Here is the 
sort of context I have seen it mentioned in...

"The company is likely to earn between 10c-12c in the financial year ended 
2003, which would see a price earnings multiple of 5 times earnings."

Many thanks in advance.

- -- 
Signed,
Holden Glova
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