3 ms·
P/E ratio is not the same as a purchase-valuation multiplier.
by burnte 6y ago
P/E ratio is not the same as a purchase-valuation multiplier.
- vikramkr 6y agoWhat you brought up above in this thread is how expensive the acquisition looks as a multiple of earnings. That multiplier is the price of the company vs the earnings for the company, which is literally just a simplified P/E ratio that ignores dilution etc. You may be thinking of revenue multiple based valuation instead?