24 Jun 2025 2:36 pm
They are short-cuts used to approximate a business's value at a given point in time. As opposed to Financial Ratios which can be used to assess any of a number of things about a company. Such as its profitability, liquidity, efficiency, solvency, likelihood that it screws-over its creditors or investors.Blackvegetable » 24 Jun 2025, 11:20 am » wrote: ↑ This **** is fundamental, Skans
Why are Market Multiples Used?
Most sophisticated investors use database/statistical modeling programs, not simple ratios to identify undervalued or overvalued stocks, or potential return on investment.