The Trailing Multiples or the Forward Multiple? which one is the best? Why? What are the benefits...

50.1K

Verified Solution

Question

Finance

The Trailing Multiples or the Forward Multiple? which one is thebest? Why?
What are the benefits of using the Earnings Multiple Method todetermine the value of a target company?
Where should the analyst exercise caution when using theEarnings Multiple Method?
Should the results of the Earnings Multiple Method be used asthe final determination of the value of the target company? Why? Orwhy not?

Answer & Explanation Solved by verified expert

4.0 Ratings (664 Votes)

Question The Trailing Multiples or Forward Multiple Which one is the best Why Sol Let us first understand Trailing Multiples and Forward Multiples Trailing Multiple Trailing multiple is defined as the ratio of Price per share to the Earnings per share over the past 12 months Trailing Multiple or Trailing PE ratio Price per share Earnings per share over the past 12 months Forward Multiple Forward multiple is defined See Answer

Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:

Unlimited Question Access with detailed Answers
Zin AI - 3 Million Words
10 Dall-E 3 Images
20 Plot Generations
Conversation with Dialogue Memory
No Ads, Ever!
Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!

Become a Member

The Trailing Multiples or the Forward Multiple? which one is the best? Why? What are the benefits...

50.1K

Verified Solution

Question

Finance

Answer & Explanation Solved by verified expert

Get Answers to Unlimited Questions

Membership Benefits:

Other questions asked by students

In a constant-pressure calorimeter, 75.0 mL of 0.830 M H2SO4 was added to 75.0 mL of...

0 The subphase of interphase in mitosis that is typically the most variable in length...

Q 2 75 In the metre bridge circuit shown AE is a uniform wire of...

nearest tenth circle I IN 12 ide the square below the area of the region...

33 Error Analysis Luke was asked to compute the length of AB What is Luke...

5 A recent survey asked high school girls to name the sport they like to...

Q49 Evaluate log3 54 log162 3 log3 486 log18 3

mework C Solve the following inequality Write t 4 2x 7 2 4x 2

Nvidia recognized revenue of $26,974 million and net income of $4,368 million for the fiscal...

Ruiz Co. provides the following sales forecast for the next four months April May Ju...

S10-3 (Learning Objective 1: Describe characteristics of preferred and common stock) Answer the following questions...

Adjust net income of $320,000 for changes in operating assets and liabilities to arrive at...