... a particular stock is overvalued, undervalued, or properly valued in terms of measures such as earnings, book value, sales, or cash flow per share Enterprise value multiples (such as EV/EBIDTA ... Warm-Up: MULTIPLES Price multiples (such as P/E, P/B, PEG, P/S, P/CF ratios) are among the most widely used tools for valuation of equities Comparing stocks' price multiples can help ... approaches to using multiples in valuation Example: Method of Comparables Example: Method of Forecasted Fundamentals Example: Method of Forecasted Fundamentals PRICE MULTIPLES Price multiples are...