Q39
If an investor states that Intel is overvalued at 65 times, he is referring to___________.
A.
earnings per share
B.
dividend yield
C.
book value
D.
P/E ratio
AnswerAnswer: Option D
Solution
Answer: Option D
Solution:
If an investor states that Intel is overvalued at 65 times, he is referring to P/E ratio. The price-to-earnings ratio (P/E ratio) is the ratio for valuing a company that measures its current share price relative to its per-share earnings (EPS). The price-to-earnings ratio is also sometimes known as the price multiple or the earnings multiple.