A company has an EPS of $2.00
Cash flow per share of $3.00
Price/cash flow ratio of 8.0x
What is its P/E ratio?
Price Per Earnings Ratio = Market Value Per Share / Earnings Per Share (EPS)
8.0 x 3.00 = 24
24/2
P/E = 12X
earnings per share
The portion of a company's profit allocated to each outstanding share of common stock. Earnings per share serves as an indicator of a company's profitability.
The Price/Earnings ration (PE ratio) is the price of stock divided by the past or future earnings. For example, if the price of Dell is $100 and the company earned $10 per share over the past 12 months, then the trailing 12 month ratio would $100/10, or 10.
Share price refers to the price of a particular company's share that is being traded in any stock marketat that particular time.
Typical reasons include an increase in the company's earnings, or in the value of its holdings, or its percentage of market share for its products. Stock price increases when there is a demand for the stock (buying) and will usually decrease if there is less demand (net selling).
the price earnings ratio is simply earnings-per-share divided by the share price. OOPS! I got that upside down! It is the share price divided by the earnings per share. The earnings figure might be for the trailing twelve months (ttm) or earnings estimated for the next four quarters.
If you mean the price-earnings ratio. It is the price per share of a common stock divided by the annual earnings of the stock.
earnings per share
Is the Price/Earnings ratio. You can find it by taking the market price per share and dividing it by the annual earnings per share.
The portion of a company's profit allocated to each outstanding share of common stock. Earnings per share serves as an indicator of a company's profitability.
The P/E looks at the relationship between the stock price and the company's earnings. For example, a company with a share price of $40 and an EPS of 8 would have a P/E of 5 ($40 / 8 = 5).
share prices of companies depend on level of earnings of the company,but maximization of share prices depends not only on earnings but also on riskyness of the company's projects, its preferred capital structure ,its corporate responsibility programs,etc
A share price is the price of a single share of a company's stock. Once the stock is purchased, the owner becomes a shareholder of the company that issued the share. The price is calculated by dividing the market capitalization by the total number of shares outstanding. When viewed over long periods, the share price is directly related to the earnings and dividends of the firm. Over short periods, especially for younger or smaller firms, the relationship between share price and dividends can be quite irrational.
How can the price of a company's share be less than the face value of the share?" How can the price of a company's share be less than the face value of the share?"
Just use 5 times 15. $75.
No, a reduction in a company's share price has no effect on the company's profits.
The price to earnings ratio is commonly known as the P/E. It signifies how much you pay for a stock versus how much money the company has made. For example, if a company's earnings were $1 per share and the stock price was $25 the P/E would be 25. This is sometimes referred to as valuation: The company is valued at 25 times earnings. There are many ways to value a company but the value based on the P/E is one of the easiest and most common.