As a rough guideline when using price-earnings multiples,keep in mind that the market-wide price-earnings multiples have historically averaged around:
A)24 to 25.
B)20 to 21.
C)16 to 17.
D)12 to 13.

Question

Quizplus · Accepted Answer

Historical market-wide price-earnings multiples have averaged around 16 to 17. While there may be variation among different industries or individual companies, this figure provides a rough guideline for evaluating price-earnings multiples.

As a Rough Guideline When Using Price-Earnings Multiples,keep in Mind