In a company’s valuation, Price Earning(P/E) multiples are applied to earnings based on the maintainable profits before tax less minority interest(gross). In determining the PE multiples, it is equally important to ensure that the following factors should also be taken into consideration:-

• net tangible asset value;
• quality of management;
• nature of products/services;
• track record;
• growth prospects;
• prospective dividend yield;
• prospective tax expense compared with prospective maintainable pretax profit
• prevailing market condition  and
• other relevant factors concerning the company.

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