Question #95
Reading: Reading 22 Market-Based Valuation - Price and Enterprise Value Multiples
PDF File: Reading 22 Market-Based Valuation - Price and Enterprise Value Multiples.pdf
Page: 33
Status: Unattempted
Correct Answer: A
Question
The trailing price-to-earnings (P/E) ratio is defined as:
Answer Choices:
A. price to most recent earnings
B. price to next period's expected earnings
C. the average P/E over the last five years
Explanation
The trailing P/E ratio is price to most recent realized earnings.