Quiz 3 content Flashcards by Fredrick Berning | Brainscape

Q

PE Ratio formula

A

= Market Price per Share /

Earnings per Share

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Q

PE Ratio formula, composed of fundamentals

A

= Payout Ratio * (1 + Stable Growth rate) /

Discount - Stable Growth

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Q

The Multiple numerator can be described as…

A

What you are paying.

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Q

The Multiple denominator can be described as…

A

What you are getting in return.

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