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PE  Ratio Method-Standalone And Consolidated Methodology

PE Ratio Method-Standalone And Consolidated Methodology

Submitted by • December 6, 2013 www.blog.sanasecurities.com

The Price Earnings Method is one of the most basic and widely used methods for valuing companies. In this approach, the price of a company share listed on an exchange is divided by its reported Earnings Per Share. The PE (Price to Earnings) Ratio thus derived is compared with the industry PE Ratio to determine if there is potential upside or if the share is overvalued, undervalued or fairly valued.

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