Multiples in finance are ratios used to compare companies, assessing their value and performance. Equity multiples, like Price-to-Sales (P/S) ratio, gauge how investors value a company based on its market value versus sales. Price-to-Book (P/B) ratio compares a firm's market value to its asset worth, aiding in determining if stocks are undervalued or overvalued. The Price Earnings Ratio (P/E ratio) measures a company's stock price against its earnings per share, offering insights into its growth potential. Dividend Yield indicates the return on investment through dividends. Enterprise Multiples, like EV/EBIT and EV/EBITDA, analyze a company's value compared to its earnings before interest and taxes, or earnings before interest, taxes, depreciation, and amortization. These metrics help investors assess if a stock is overpriced, underpriced, or fairly valued, considering factors like growth potential, industry specifics, and market conditions. Understanding a company's nature, industry, and financial health is crucial to accurately interpret these multiples for investment decisions.