The price-earnings ratio is the conventional way to express the sales price of a target bank in a merger or acquisition deal.

Question

Quizplus · Accepted Answer

The price-earnings ratio expresses the value of a company based on its current share price relative to its per-share earnings, not the sales price of a target bank in a merger or acquisition deal. The sales price in such deals is often discussed in terms of the purchase price or valuation, which can consider various factors including but not limited to earnings, assets, and market position.

The Price-Earnings Ratio Is the Conventional Way to Express the Sales