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.

Cite Term

To help you cite our definitions in your bibliography, here is the proper citation layout for the three major formatting styles, with all of the relevant information filled in.

Page URL
Modern Language Association (MLA):
Market Multiple. Payroll & Accounting Heaven Ltd.
December 01, 2022
Chicago Manual of Style (CMS):
Market Multiple. Payroll & Accounting Heaven Ltd. (accessed: December 01, 2022).
American Psychological Association (APA):
Market Multiple. Retrieved December 01, 2022
, from website:

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.