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If an investor states that Intel is overvalued at 65 times, he is referring to___________.
Answer & Solution
Correct Answer:
Option
D
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.
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