Generally, "multiples" is a generic term for a class of different indicators that can be used to value a stock. A multiple is simply a ratio that is calculated by dividing the market or e… See more

Enterprise value multiples and equity multiples are the two categories of valuation multiples. Enterprise value multiples include the enterprise-value-to-sales ratio(… See more

Investors start the multiples approach by identifying similar companies and evaluating their market values. A multiple is then computed for the comparable companies … See more

Let’s assume that an analyst wants to conduct the multiples approach to compare where major banking stocks trade in relation to their earnings. They can do this easily by cr… See more