Trading comps (comparables): related pages

The use of comparisons of the valuations at which deals, such as takeovers, have occurred, in valuing a company.

A measure of how expensive a share is obtained by dividing a measure of cost against a measure of value or profits.

The calculation of the present value of a stream of future cash flows taking into account both risk and the time expected to elapse before the cash is received.

PE ratio

Share price divided by earnings per share.