Thursday, January 30, 2014

P/E Ratio and EPS

P/E is short for the ratio of a company's share price to its per-share earnings. As the name implies, to calculate the P/E, you simply take the current stock price of a company and divide by its earnings per share (EPS): 

P/E Ratio =Market Value per Share
Earnings per Share (EPS)

EPS Ratio =PAT
TOTAL NO. OF O/S SHARES

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