Price earning in the media & advertising sector in Europe 2023

The price to earnings ratio is a measurement often used to determine stock valuation. In short, P/E is used to measure what the market is willing to pay for a company based on its earnings. The trailing P/E for media & advertising companies operating in the software entertainment market was approximately 258. This meant that an investor would be willing to pay 258 (dollars or currency used) for every one (dollar) made through the companies earnings.

Another formula that is used by investors to measure the value of an industry or potential target company for acquisition is the enterprise value to earnings before interest, taxes, depreciation and amortization (EV/EBITDA).