Many business owners who have had their businesses valued remember providing a large amount of information and documents that went into a long and expensive report containing only a few pages of ...

Relative valuation—using simple metrics to compare a firm’s value to its peers—is a cornerstone of financial decision-making. If a company earns $2 billion in profit, and if similar firms trade at 15 ...

The price-earnings (P/E) ratio, or earnings multiple, is one of the most popular measures of company value. It is computed by dividing the current stock price by earnings per share (EPS) for the most ...

Toby Walters is a financial writer, investor, and lifelong learner. He has a passion for analyzing economic and financial data and sharing it with others. The real value of an item is its nominal ...