1

multiple

play
adjective mul·ti·ple \ ˈməl-tə-pəl \
Updated on: 26 Jul 2017

Definition of multiple

1 :consisting of, including, or involving more than one
  • multiple births
  • multiple choices
2 :many, manifold
  • multiple achievements
  • He sufferred multiple injuries in the accident.
3 :shared by many
  • multiple ownership
4 :having numerous aspects or functions :various
  • life is very multiple; full of movements, facts, and news
  • —John Galsworthy
5 :being a group of terminals (see 2terminal 3) which make a circuit available at a number of points
6 :formed by coalescence of the ripening ovaries (see ovary 2) of several flowers
  • a multiple fruit

Examples of multiple in a Sentence

  1. She made multiple copies of the report.

  2. a person of multiple achievements

  3. He suffered multiple injuries in the accident.

Recent Examples of multiple from the Web

These example sentences are selected automatically from various online news sources to reflect current usage of the word 'multiple.' Views expressed in the examples do not represent the opinion of Merriam-Webster or its editors. Send us feedback.

Origin and Etymology of multiple

French, from Latin multiplex, from multi- + -plex -fold — more at -fold

Other Mathematics and Statistics Terms


2

multiple

noun

Definition of multiple

1 a :the product of a quantity by an integer
  • 35 is a multiple of 7
b :something in units of more than one or two
2 :parallel 4b
3 chiefly British :chain store

Examples of multiple in a Sentence

  1. 35 is a multiple of 7.

  2. 12 is a multiple of 6.

Recent Examples of multiple from the Web

These example sentences are selected automatically from various online news sources to reflect current usage of the word 'multiple.' Views expressed in the examples do not represent the opinion of Merriam-Webster or its editors. Send us feedback.

Origin and Etymology of multiple


Financial Definition of MULTIPLE

multiple

What It Is

A multiple is a relative valuation metric used to estimate the value of a stock.

How It Works

Let's look at an example to illustrate the concept.

Assume that Big Store's stock is trading at $14 and the company's earnings per share (EPS) is $2. Therefore, Big Store's price-to-earnings ratio (P/E) is $14/$2 = 7. This number -- "7" -- is known as a multiple.

Here's how you could use it in your analysis:

Assume the average P/E ratio for the companies in Big Store's industry is 10. By applying the average industry multiple to Big Store's earnings per share (EPS), you can estimate the price Big Store "should" be trading at a higher price. Here's the calculation:

Price = EPS * Multiple

Price = $2 * 10 = $20

In this example, it appears that Big Store's stock price should be trading at $20 instead of $14. If your analysis is correct, you would want to buy the company today and wait for the price to adjust to where it "should" be, locking in a healthy $6 gain.

Why It Matters

You can apply a multiple to any number of performance measures, but some of the most common include EPS, EBITDA, book value and revenue.

Investors use multiples to gain some insight into whether a company's stock price is too high or too low.

Multiples are quick, but limited tools for stock analysis. They can provide a snapshot of a stock’s potential without getting bogged down in the details of the financial statements.

Unfortunately, most of the useful details are in the financial statements. For example, Big Store may trade at a lower multiple relative to its peers because it isn't growing as fast. Or perhaps its management team is not as effective. If you only use the earnings multiple to estimate the stock's intrinsic value, you're working without 99.9% of the available information.

The bottom line is that multiples can be complementary tools in your financial toolbox. However, they should never be the only tools you use.



MULTIPLE Defined for English Language Learners

multiple

play
adjective

Definition of multiple for English Language Learners

  • : more than one

  • : shared by many people


multiple

noun

Definition of multiple for English Language Learners

  • mathematics : a number that can be produced by multiplying a smaller number


MULTIPLE Defined for Kids

1

multiple

play
adjective mul·ti·ple \ ˈməl-tə-pəl \

Definition of multiple for Students

:being or consisting of more than one
  • We need multiple copies.

2

multiple

noun

Definition of multiple for Students

:the number found by multiplying one number by another
  • 35 is a multiple of 7.

Medical Dictionary

multiple

play
adjective mul·ti·ple \ ˈməl-tə-pəl \

medical Definition of multiple

1 :consisting of, including, or involving more than one
  • multiple births
2 :affecting many parts of the body at once


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