A semantic proposal: when we should use "multiple" vs. "ratio"

Business Valuation UpdateVol. 5 No. 11
November 1999
Shannon P. Pratt, CFA, ARM, ABAR, FASA, MCBA, CM&AA


I suggest that we restrict the use of the term "ratio" to the financial statement analysis context and use the term "multiple" in the context of value measures. Use "multiple" in the market approa ...