ManAcc: Price-Earnings (PE) multiple valuation basics

Make sure you understand (instead of memorise) the basic principles of the PE valuation.
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#PE-valuation #ManAcc #Finance

[@amnest1ac]

Thank you for this video. It helped me to connect the dots!

[@TabaldiEducation]

Glad to hear it! :)

[@strininaidoo9679]

Thank you for the clarity in explanation.....

[@TabaldiEducation]

It is out pleasure

[@patricembaya8183]

Thank you so much for explaining so beautifully. Gone is my confusion

[@TabaldiEducation]

Glad it was helpful!

[@mpumimalindi2203]

Very good explanation. Thank you

[@TabaldiEducation]

Glad it helped!

[@meronsolomon6348]

thanks u make it much easier

[@sixolisilemkhandlwana204]

Thank you so much, it was so useful

[@TabaldiEducation]

So glad to hear that, Sixolisile

[@zinzisiluma1470]

Hello may please ask when making adjustments to the PE ratio how do we know if we have to increase it or decrease it? Thank you

[@TabaldiEducation]

Hi Zinzi. If the risk of the target company is higher than the benchmark company, you need to reduce the PE. This will lower the valuation. That makes sense because you will not be willing to pay the same price for a company with higher risk. Generally, the PE of a small, unlisted company will be much lower than a big listed company.