If an investor states that Intel is overvalued at 20 times, he is referring to Intel's:
A) earnings per share.
B) dividend yield.
C) book value.
D) P/E ratio.

Question

Quizplus · Accepted Answer

The investor is referring to Intel's P/E (price-to-earnings) ratio, which is a common metric used to assess whether a stock is overvalued or undervalued. A P/E ratio of 20 times means the stock is trading at 20 times its earnings.

If an Investor States That Intel Is Overvalued at 20