Showing posts with label earnings mu. Show all posts
Showing posts with label earnings mu. Show all posts

Sunday 18 September 2011

Finance for Managers - Earnings-Based Valuation

Another approach to valuing a company is to capitalize its earnings.  This involves multiplying one or another income statement earnings figure by some multiple.  Some earnings-based methods are more sophisticated than others.  There is also the question of which earnings figure and which multiple to use.