If the market multiple is 20.24 and the P/E ratio of a company is 24.5, then the stock's relative P/E is
A) 0.83.
B) 1.19.
C) 1.21.
D) 4.26.

Name: If the market multiple is 20.24 and the P/E ratio of a company is 24.5, then the stock's relative P/E is A) 0.83. B) 1.19. C) 1.21. D) 4.26.
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Question

Quizplus · Accepted Answer

The relative P/E is calculated by dividing the company's P/E ratio by the market multiple. In this case, the relative P/E is 24.5 / 20.24 = 1.21.

If the Market Multiple Is 20