Price to Earnings Ratio

Written by Jerry Ratzlaff on . Posted in Manufacturing Engineering

Price to earnings ratio, abbreviated as P/E, is a way of gauging wheather the stock price is high or low compared to the past or to other companies.

 

price to earnings ratio Formula

\(\large{ P/E = \frac{ MPS }{ EPS }  }\)   

Where:

\(\large{ P/E }\) = price to earnings ratio

\(\large{ EPS }\) = earnings per share

\(\large{ MPS }\) = market price of share

 

Tags: Equations for Manufacturing