average multiple relative to the market

English translation: Average Price-Earnings Ratio (P/E Ratio)

GLOSSARY ENTRY (DERIVED FROM QUESTION BELOW)

English term or phrase:	average multiple relative to the market
Selected answer:	Average Price-Earnings Ratio (P/E Ratio)
Entered by:	Сергей Лузан

14:10 Aug 18, 2005

English language (monolingual) [PRO]
Bus/Financial - Finance (general) / Fund reports

English term or phrase: average multiple relative to the market

How do you understand the following sentence (in particular the expression
between ***):

While the retail sector is trading at close to its ***average multiple relative to the market*** in both UK and US, it is underpinned by optimistic
consensus earnings expectations.

Laura Vinti KudoZ activity Questions: 377 (9 open) (12 without valid answers) (30 closed without grading) Answers: 165 United States
Local time: 07:48

Average Price-Earnings Ratio - P/E Ratio

Explanation:
Price-Earnings Ratio - P/E Ratio
A valuation ratio of a company's current share price compared to its per-share earnings.

Calculated as:

Investopedia Says: EPS is usually from the last four quarters (trailing P/E), but sometimes can be taken from the estimates of earnings expected in the next four quarters (projected or forward P/E). A third variation is the sum of the last two actual quarters and the estimates of the next two quarters.

Sometimes the P/E is referred to as the "multiple," because it shows how much investors are willing to pay per dollar of earnings.
Investment information about Price-Earnings Ratio - P/E Ratio
Copyright ©2000, Investopedia.com - Owned and Operated by Investopedia Inc. All rights reserved. More from Investment
http://www.answers.com/topic/price-earnings-ratio-p-e-ratio?...

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Note added at 12 days (2005-08-30 19:32:55 GMT) Post-grading
--------------------------------------------------

Thank you for grading, Laura! Let's consider "all other listed companies" as "the broader market".

Selected response from:

Сергей Лузан
Russian Federation
Local time: 14:48

Grading comment

Thank you for the helpful suggestion, but I don't think that "average P/E ratio" is the 100% exact answer... I have been doing some research and I now think that the correct explanation is "average P/E multiples for the sector, compared to the broader market", along the lines of Victor's suggestion.
3 KudoZ points were awarded for this answer

SUMMARY OF ALL EXPLANATIONS PROVIDED

average figure/price relative to the market

zax

its relative valuation is "average"

marybro

1 +1

Average Price-Earnings Ratio - P/E Ratio

Сергей Лузан

Discussion entries: 1

Answers

1 hr confidence:

its relative valuation is "average"

Explanation:
a complicated subject...here's one explanation
http://www.investopedia.com/articles/fundamental/03/111203.a...

marybro
Local time: 07:48
Works in field
Native speaker of: English
PRO pts in category: 12

8 hrs confidence:

average figure/price relative to the market

Explanation:
without going in too much details

zax
Local time: 07:48
Specializes in field
Native speaker of:

Arabic,

English
PRO pts in category: 16

16 mins confidence:

peer agreement (net): +1

Average Price-Earnings Ratio - P/E Ratio

Сергей Лузан
Russian Federation
Local time: 14:48
Works in field
Native speaker of:

Russian
PRO pts in category: 9

Grading comment

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