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I am trying to find out where you find multiplier factors to value companies - do you know where I can get the

I invest in the stock market and would like to know what companies are good value and which ones are not, I have been told these multiplier factors value a company by factoring the profit figures and are different for certain kinds of company ie. 1,2,3,4,5 - does anyone know where I can obtain these - I have tried the financial times and investors chronicle.

Public Comments

1. The multiples you are talking about are P/E (price to earnings), P/B (price to book equity), PEG (P/E to earnings growth), P/Sales (price to sales), etc. So say P/E of 10x means the company is worth 10x its earnings. High P/E means that market have factored in the potential upside and therefore the shares are expensive. In general, there are no hard and fast rules about what level of P/E ratios (say) are since you need to compare across companies in the same industry to identify the good value ones, companies with low P/E ratios in the same sector are generally considered to be good value (or worth a more detailed look) but investing based on this is too simplistic, you need to look at other factors mentioned above, actual company financial statements and growth potential to determine good value shares.