If the market multiple is 23.0 and the P/E ratio of a company is 27.4, then the stock's relative P/E is
A) 0.84.
B) 1.19.
C) 3.21.
D) 4.40.

Name: If the market multiple is 23.0 and the P/E ratio of a company is 27.4, then the stock's relative P/E is A) 0.84. B) 1.19. C) 3.21. D) 4.40.
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Question

Quizplus · Accepted Answer

The relative P/E ratio is calculated by dividing the P/E ratio of the company by the market multiple. So, the relative P/E ratio of the stock is 27.4/23.0 = 1.19.

If the Market Multiple Is 23