Market Multiple

Business, Legal & Accounting Glossary

Definition: Market Multiple


Market Multiple


Full Definition of Market Multiple


Investment analysis factor used to determine if a stock is appropriately priced when compared to its financial situation. It is usually calculated by dividing the stock price by the earnings per share for a particular period. For example, a stock price of $5 for a company earning $1 per share is said to be selling at a multiple of five (or five times earnings). Generally, the higher the market multiple is, the more optimistic the market is regarding the company’s future.


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Definition Sources


Definitions for Market Multiple are sourced/syndicated and enhanced from:

  • A Dictionary of Economics (Oxford Quick Reference)
  • Oxford Dictionary Of Accounting
  • Oxford Dictionary Of Business & Management

This glossary post was last updated: 20th November, 2021 | 0 Views.