I don't know if this is the best forum to post this question, but I didn't find any other more suitable
I would like to know the meaning of "trade at six times earnings" in this sentence. Can anybody help me?
If you have a mature firm with a long history, you can compare the multiple it ***trades*** today to the multiple it used to ***trade*** in the past. Thus, the company may be viewed as cheap because it ***trades at six times earnings***, if it has historically ***traded at ten times earnings.***
Thanks!
I would like to know the meaning of "trade at six times earnings" in this sentence. Can anybody help me?
If you have a mature firm with a long history, you can compare the multiple it ***trades*** today to the multiple it used to ***trade*** in the past. Thus, the company may be viewed as cheap because it ***trades at six times earnings***, if it has historically ***traded at ten times earnings.***
Thanks!