Price-Earnings Ratio - Business concept of the day
Business Development
323 week ago — 1 min read
Definition: The Price-Earnings Ratio refers to a ratio of a stock price to company's earnings per share (EPS), This ratio is widely used to value companies, usually publicly traded companies.
Example: It is calculated by dividing the price of the stock by earning per share of the company. For example, if a stock is trading at $30 & its earnings per share for the year ended was $10, then Price-Earnings ratio will be 30/10 or 3.
Business Insight: It is widely used by analysts to predict stock prices based on the earnings forecasts.
Posted by
GlobalLinker StaffWe are a team of experienced industry professionals committed to sharing our knowledge and skills with small & medium enterprises.
Network with SMEs mentioned in this article
View GlobalLinker 's profile
SME Inspirations
Most read this week
Comments (9)
Please login or Register to join the discussion