Question

If I want to value a stock using relative valuation with its earnings per share from...

If I want to value a stock using relative valuation with its earnings per share from the last twelve months, which multiple do I need to compute for the company's comparables?

A

Forward PE

B

PEG

C

Trailing PE

D

EV/EBITDA

E

EV/FCFF

0 0
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Answer #1

Trailing price-to-earnings (P/E) is a relative valuation multiple that is based on the last 12 months of actual earnings.

Thus the answer is C)

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