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
Q. Explain about Opportunity cost pricing? Opportunity cost pricing is considered most mathematically correct way of viewing transfer pricing. Reason is that it looks at transf



advantages of outbound logistics management

There are three principles of total quality: customer focus, continuous improvement, and teamwork. Using the South University online library, find three articles that describe curr

To maximise the potential of our business I would like you to prepare a strategic plan, specifically I would  like the plan to incorporate a mission statement, a SWOT analysis, a

Q. Explain about hopwood’s Self-control? Self-regulation e.g. members of staff or managers exerting self-control by the modification of their own behaviour.  This is essence de

Q. Explain about Position ratio - working capital ratio? 1 Current ratio (CA) or working capital ratio CA = Current assets / Current liabilities       (times) The current

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

Q. Define Market value added? MVA is an external measure of shareholder wealth, the market value added from one period to another. It is measured by the taking the rise in the