$PSID Using the P/E multiplier valuation method,

$PSID Using the P/E multiplier valuation method, multiplying the P/E ratio by the EPS would give you the expected fundamental share price. If we see earnings increase substantially (as the company has projected), this will bring the P/E multiplier valuation up big time, meaning that the shares will become more valuable in the eyes of traders who utilize this method of valuation.