So it is also known as stock price earnings ratio or market profit ratio. The formula is: Earnings per share = common stock market price / common stock earnings per share per year The molecules in the above formula refer to the current market price per share, and the denominator can be u...
Сontents what is the p/e ratio? p/e ratio formula p/e ratio example how the price-to-earnings ratio is used high vs. low p/e ratios 3 p/e ratio types pros & cons of using p/e ratio peg ratio vs. price-earnings ratio earnings yield vs. p/e ratio bottom line expand the p/...
The price-to-earnings ratio can be used to compare a company to its competitors in the same industry. Comparing different companies’ P/E ratios can determine which is a better investment. However, the P/E ratio can also be compared to the company’s past performance to get a better idea...
What is the formula? The efficiency of pumps refers to the ratio of effective power of pumps to shaft power of pumps. η=Pe/P The power of pumps normally refers to input power, i.e. the power conveying from prime mover to pump shaft, so it is also called shaft power and it is exp...
PE ratio compares a company’s stock price with its earnings per share and helps determine if the stock is fairly priced. But what is a good PE ratio?
The P/E ratio is a figure that compares a company's stock price to its earnings. To calculate it, divide the stock's current market price by its earnings per share (EPS). The EPS represents how much profit a company makes for every share of stock it has. Here's what the formula lo...
The earnings per share ratio (EPS) is the percentage of a company's net income per share if all profits are distributed to shareholders. The earnings per share ratio tell a lot about the current and future profitability of a company and can be easily cal
Debt to Equity (D/E) ratioD/E ratio indicates the promoter’s capital or equity in the company. Generally, lower value is considered to be better. However, it is also an indication of the expansion through fund raising.What you need: Income Statement The formula: Interest Coverage Ratio =...
A PE ratio of 5 is both good and bad. It's good because the stock is trading at a very cheap valuation, just 5x EPS. However, very low P/E ratios typically indicate a company with very little growth potential or possibly one that will decrease in size in the future. ...
Note that since Forward P/E = Current Price/Future Estimate of EPS, an increased future EPS will lower the forward P/E. If the stock price rises more than the EPS forecast, future growth is implied. Ultimately, the P/E ratio is ametricthat allows investors to determine how valuable a ...