Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/218099 
Authors: 
Year of Publication: 
1993
Citation: 
[Journal:] South African Journal of Business Management [ISSN:] 2078-5976 [Volume:] 24 [Issue:] 2 [Publisher:] African Online Scientific Information Systems (AOSIS) [Place:] Cape Town [Year:] 1993 [Pages:] 73-76
Publisher: 
African Online Scientific Information Systems (AOSIS), Cape Town
Abstract: 
Price earnings (P/E) multiples are commonly used by corporate financial managers as a measure of corporate performance and as a measure of corporate value. With this article an analysis of 74 companies is presented. Each company significantly changed its P/E multiple over a period of three years. The analysis shows that a 2% improvement in operating profit margin or a 2% reduction in financial risk achieved a 1% improvement in the P/E multiple. To a lesser extent, an improvement in the current ratio and in net asset value also resulted in an improved P/E multiple.
Persistent Identifier of the first edition: 
Creative Commons License: 
cc-by Logo
Document Type: 
Article

Files in This Item:
File
Size





Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.