I was surprised there were so many methods to valuing a business. I figured there would be maybe 1 or 2 preferable ways to valuating. I thought valuating would be standard by an accounting standard.
The price/earnings ratio was a little confusing. I'm just a little confused at how it is calculated.
My first question would be how is the price/earning ratio calculated? And my second question would be is the multiple given or is it calculated by a different method?
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