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P-E based Valuation

SSourav5y ago
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?
SSyed5y ago#1
I think only preference share dividend will be deducted and not the ordinary share dividend. But final words is with sir John.
John MoffatJohn MoffatTutor5y ago#2
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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