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If an investor states that Intel is overvalued at 65 times, he is referring to___________.

A. earnings per share

B. dividend yield

C. book value

D. P/E ratio

Answer: Option D

Solution(By Examveda Team)

If an investor states that Intel is overvalued at 65 times, he is referring to P/E ratio. The price-to-earnings ratio (P/E ratio) is the ratio for valuing a company that measures its current share price relative to its per-share earnings (EPS). The price-to-earnings ratio is also sometimes known as the price multiple or the earnings multiple.

This Question Belongs to Commerce >> Financial Management

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Comments ( 1 )

  1. Jitendra Kumar
    Jitendra Kumar :
    6 years ago

    can anybody explain this

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