Calculate the price earnings ratio, Strategic Management

Q. Calculate the Price earnings ratio?

Price earnings (PE) ratio

PE   = (Market share price/EPS)                     (no. of times)

The PE ratio is most widely quoted investors' ratio.  It tells the market confidence in a company by taking the current market share price in relation to the most recent EPS.  A high PE ratio indicates good growth prospects. PE ratios of many industries are available as published information.  If the PE and EPS are known, the share price of a company can be established as follows:  

Share Price = EPS x PE ratio  

This is useful when valuing shares for unlisted companies, by taking an industry similar PE ratio.

Posted Date: 8/9/2013 3:07:57 AM | Location : United States







Related Discussions:- Calculate the price earnings ratio, Assignment Help, Ask Question on Calculate the price earnings ratio, Get Answer, Expert's Help, Calculate the price earnings ratio Discussions

Write discussion on Calculate the price earnings ratio
Your posts are moderated
Related Questions
Submit the integrated final copy of your Information Strategic Plan. The proposal will actually consist of the purpose, history, and scope located in the final project template

1. Find one research article entitled 'Using the balance scorecard as a strategic management system' attached here with. Read this article carefully and give your comments. You may

Business-Level Strategy From the outset, you were required to focus on the strategic business unit (SBU) to ensure that Business-level strategies could be applied. The challeng

Choose a real life company.  This could be an organization from any industry.  No two students should select the similar company.  It could be the organization you are working in o

Q. Feed-forward control - prevention rather than cure? Feed-forward control would be a system that in a pre-emptive way, reacts to changes in its environment, normally to maint

A highly perishable drug spoils after three days.  That is, a fresh unit on day t may be used on day t, day t+1, and day t+2, but must be disposed of at the end of day t+2. Each

Present a real life case study of the concept that you chose in Part One ‘in action’. You can use your own organisation or an organisation of your choice – we recommend you use an

Question 1 Explain the Portfolio Approach to Strategic Analysis and discuss its limitations. Question 2 Write short notes on each of the following (questions carry equa

QUESTION 1 Individuals at all levels are prone to resisting change. What are the five main reasons why individuals resist change? QUESTION 2 Research has identified six

write an essay of approximately 1500 words in which you critically analyse and evaluate the value innovation strategy that sanlam opted for in their 2009 blue star financial advise