anonymous
  • anonymous
Would you use a P/E ratio for a non-stock private company?
Finance
jamiebookeater
  • jamiebookeater
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anonymous
  • anonymous
Depends on what you are trying to do. P/E by definition is a "price" divided by "earnings". What are you thinking of applying the P/E ratio to?
anonymous
  • anonymous
Sure. Just apply it to net income.
anonymous
  • anonymous
I appreciate the help and response. I'm trying to do a loss in value of a company who's rev peaked in 2002 and started to decline. 1. The P/S multiple for different Internet companies can be used against the revenue? The company is a e-commerce store front. So comparing the company to Yahoo or Amazon is accurate? Remember, this is small business privately owned with no stock. 2. Should I take the peak revenue or the current/full fiscal year? I'm trying to comprehend the Finance perspective. Again, I truely appreciate the help.

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