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As a result, we believe investors should pay a lower multiple, albeit for a higher profit number.
The stock is also priced at a lower multiple than China Telecom, because it has businesses other than cellular".
Put it on a lower multiple of nine, and it's worth about $6.7 billion.
Disney, in fact, has a lower multiple than the media conglomerate AOL Time Warner, whose shares are trading at 43 times operating income.
But there are also some utility companies that pay absolutely no dividends, instead offering investors a growth stock story at a lower multiple than your basic dot-com.
Mr. Weill, known for being obsessed with his stock price, has been frustrated that Citigroup shares sell at a lower multiple of their earnings than other financial services companies like the American International Group.
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We need to see much lower multiples in big pharmaceutical stocks, for example.
That implies slower economic growth and lower multiples for earnings in the stock market.
"We've shifted to lower multiples and profitable companies," as opposed to those that promise more than they can deliver, Mr. Cupps said.
MR. McQUIDDY likes to buy stocks with price-to-earnings ratios of 30 to 40, but he has found high-earning bargains at lower multiples.
Even during the best of times the shares of financial services firms trade at lower multiples of earnings than those of advanced industrial companies.
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