Price/earnings (p/e) ratio, Microeconomics

Price/Earnings (P/E) Ratio

This is a measure of an organization investment potential. Literally, a P/E ratio is how much a share is worth per dollar of earnings. The price-earnings ratio is calculated as follows:

325_Price earning ratio.png

An industries P/E ratio depends on investors' perceptions of an organization potential. Factors such as risk, quality of management, earnings history, growth potential, and organization conditions all come into play.

Posted Date: 10/16/2012 8:17:50 AM | Location : United States







Related Discussions:- Price/earnings (p/e) ratio, Assignment Help, Ask Question on Price/earnings (p/e) ratio, Get Answer, Expert's Help, Price/earnings (p/e) ratio Discussions

Write discussion on Price/earnings (p/e) ratio
Your posts are moderated
Related Questions
The cross elasticity of demand calculates the responsiveness of the quantity demanded of one product to alters in the price of another product.  For example, the quantity demanded

How did fixed exchange rates and the Golden Standard affect the U.S. economy as well as other countries.

Problem 1: i) Is Protectionism always beneficial? Discuss. ii) To what extent can a country actually rely on the principle of Comparative advantage before engaging in in

do you agree that according to econmy theory a business will always close if its total reveneu cover total costs

Externalities: Many economic activities have collateral effects (at times positive, but more often negative) on other people who aren't directly involved in that activity. Illustra

using the marginal utility approach, discuss how economic theory explains the optimum pattern of consumption for an individual consumer. consider how far this analysis can explain

what happen when a supply shift to the right on a graph

Smoking cigarettes is a leading cause of many diseases

Imagine a country where plane and train services between two main cities are both provided by private companies, and, from a consumer perspective these services are viewed as subst

use of diagram how the price mechanism operates to allocate scarce resources. use examples to illustrate the answer.