What Is a Price Multiple?

A price multiple is a valuation metric that is used to compare companies within the same sector. Price multiples can be used to value a company using either its market capitalization or its enterprise value. The most common price multiples are the price-to-earnings (P/E) ratio, the price-to-sales (P/S) ratio, and the price-to-book (P/B) ratio. The … Read more

Goods-In-Process Definition.

The “Goods-In-Process Definition” is an accounting term that refers to the value of inventory that is currently being processed. This includes both finished goods that are waiting to be shipped, as well as raw materials that are being used to create new products. The Goods-In-Process Definition is important because it provides a snapshot of the … Read more

What is an action?

A share is part of the total capital in which a company is divided. Each institution is made up of a certain number of shares that will be distributed among its partners. And, each of these actions may be freely transmitted between their shareholders. Therefore, the true meaning of an action gives rise to an … Read more