Abstract
This chapter discusses stock valuation using relative valuation ratios, typically referred to as multiples. These multiples are widely used by equity analysts and widely discussed in the financial press. Their popularity is largely due to their simplicity, but, as discussed below, this simplicity may be deceiving and may lead to faulty analyses and, ultimately, to wrong investment decisions.
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© 2011 Javier Estrada
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Estrada, J. (2011). Multiples. In: The Essential Financial Toolkit. IESE Business Collection. Palgrave Macmillan, London. https://doi.org/10.1057/9780230295193_9
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DOI: https://doi.org/10.1057/9780230295193_9
Publisher Name: Palgrave Macmillan, London
Print ISBN: 978-1-349-32888-8
Online ISBN: 978-0-230-29519-3
eBook Packages: Palgrave Economics & Finance CollectionEconomics and Finance (R0)