Calculate the price earnings ratio, Strategic Management

Assignment Help:

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.


Related Discussions:- Calculate the price earnings ratio

Find the minimum total cost, A fence enclosure consists of a rectangle of l...

A fence enclosure consists of a rectangle of length L and width 2 R , and a semicircle of radius R , as shown in Figure 1. The enclosure is to be built to have an area of 1600 m

Animal processing, what is HACCP and benefits in food industry

what is HACCP and benefits in food industry

Compensation, compensation strategy template

compensation strategy template

Show the arguments against the controllability principle, Q. Show the Argum...

Q. Show the Arguments against the controllability principle? -  Political arguments may occur over such costs which are more subjective than objective when determining controll

Groups and teams, groups and or teams will solve all the effectiveness and ...

groups and or teams will solve all the effectiveness and efficiency challenges facing the 21st century organisation

Synergy, Mergers and acquisitions (abbreviated M&A) are both an aspect of c...

Mergers and acquisitions (abbreviated M&A) are both an aspect of corporate strategy, corporate finance and management dealing with the buying, selling, dividing and combining of di

Heterogeneous catalysis simulator, 1. Run the Heterogeneous Catalysis simul...

1. Run the Heterogeneous Catalysis simulator for different initial conditions (initial partial pressures of species A, B, C, and D) to get the reaction rates; 2. Study the influ

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd