If an investor states that Intel is overvalued at 65 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 measure of the stock price relative to its earnings per share. A P/E ratio of 65 times indicates that the stock price is 65 times higher than Intel's earnings per share, which suggests that the stock may be overpriced or overvalued.

If an Investor States That Intel Is Overvalued at 65