Abschnittsübersicht

  • This section takes a closer look at the P/E ratio, the most popular valuation multiple among financial analysts. We show how to derive the P/E ratio from a simple valuation model. This allows us to better understand the (implicit) assumptions we make when working with the P/E ratio. We also see that many other multiples are a function of the P/E ratio.

    • This section's reading assignment and review questions are listed below:

    • Reading: The P/E Ratio Buch
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    • Quiz: The P/E Ratio Test
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