The most commonly used equity multiple in stock valuation is the:
APC ratio
BP/E ratio
CPB ratio
DPS ratio
Answer & Solution
Correct answer: B. P/E ratio
1. It needs only price and earnings per share.
2. Both numbers are easily available to any analyst.
3. That multiple is the P/E ratio.
_Source: OpenStax Principles of Finance 2e, Chapter 11, Stocks and Stock Valuation._
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