The multiples

**approach**is a valuation theory based on the idea that similar assets sell at similar prices. This assumes that a ratio comparing value to some firm-specific variable (operating margins, cash flow, etc.) is the same across similar firms.Also question is, what is the multiplier in stocks?

The earnings

**multiplier**, also called the price-to-earnings ratio (P/E), is a valuation method used to compare a company's current share price to its per-share earnings.What does it mean to trade at a multiple?

**Trading Multiples**are a type of

**financial**metrics used in the valuation of a company. When valuing a company, everyone relies on the most popular method of valuation, i.e. For this reason, “

**Trading Multiples**” are considered and the relative valuation is calculated.

What is a stock price multiple?

A

**price multiple**is any ratio that uses the share**price**of a company in conjunction with some specific per-share financial metric for a snapshot on valuation. The share**price**is typically divided by a chosen per-share metric to form a ratio.