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P-E based Valuation

This topic has 2 replies, 3 voices, and was last updated 3 years ago by John Moffat.

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September 7, 2021 at 8:10 am #634681
Sourav9271
Participant
- Topics: 170
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Sir,
If in question PAT is given and Dividends are given .Then what should be multiplied with P-E
Should I consider PAT or Earnings after dividend?
September 7, 2021 at 1:47 pm #634729
syedmushahid
Participant
- Topics: 22
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I think only preference share dividend will be deducted and not the ordinary share dividend.
But final words is with sir John.
September 7, 2021 at 4:39 pm #634769
John Moffat
Keymaster
- Topics: 57
- Replies: 54699
PE means price earnings. We multiply the earning available to shareholders (i.e. after preference dividends, after interest and after tax) by the PE ratio to get the share price.
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