Price to Earnings Ratio

on . Posted in Project Management 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

\(\large{ P/E = \frac{ MPS }{ EPS }  }\) 
Symbol
\(\large{ P/E }\) = price to earnings ratio
\(\large{ EPS }\) = earnings per share
\(\large{ MPS }\) = market price of share

 

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