Investointimäärää

Investointimäärää, or investment multiple, is a financial metric used to evaluate the potential return on investment (ROI) of a particular asset or investment opportunity. It is calculated by dividing the current price of an asset by a specific metric, such as earnings per share (EPS), book value per share, or free cash flow per share. The resulting multiple indicates how much investors are willing to pay for each unit of the underlying metric.

For example, the price-to-earnings (P/E) ratio is a common investment multiple that compares the current stock price to the earnings per share. A high P/E ratio may suggest that the stock is overvalued, while a low P/E ratio may indicate undervaluation.

Investment multiples can vary significantly across different asset classes and industries. For instance, technology stocks often have higher P/E ratios compared to more stable industries like utilities. Additionally, multiples can change over time due to factors such as economic conditions, industry trends, and company-specific performance.

Investors use investment multiples to compare the relative value of different investments, identify potential bargains, and assess the overall market sentiment. However, it is essential to consider multiples in the context of other fundamental and technical analysis metrics, as well as the specific circumstances of the investment opportunity.