Price/earnings (p/e) ratio, Microeconomics

Assignment Help:

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.


Related Discussions:- Price/earnings (p/e) ratio

Society of international financial telecommunications, Society of Internati...

Society of International Financial Telecommunications: The foreign exchange market operates worldwide, that is, the reach of the foreign exchange market is global. The foreign

Describe trade unions and collusion among employees, Trade union can also p...

Trade union can also pay a useful role in improving the wages of the workers without causing adverse effects on employment. This case which is intensely associated with the idea of

Revenue and profit maximization, Revenue and Profit Maximization: When...

Revenue and Profit Maximization: Whenever a good is produced, the individual firm which has produced incurs costs which are are referred to as private costs and the society in

PRODUCTION FUNCTION, discuss the problems of measuring productivity in actu...

discuss the problems of measuring productivity in actual work situations. how might productivity be measured for each of the following industries: education, government and manufac

Effectiveness of productive effort, Productivity:Generally, productivity me...

Productivity:Generally, productivity measures efficiency or effectiveness of productive effort. Productivity can be measured in several different ways. Physical productivity measur

Optimal consumption bundle and marginal utility per dollar, What is the opt...

What is the optimal consumption bundle and marginal utility per dollar? The optimal consumption bundle is the consumption bundle which maximizes a consumer's total utility sp

Substitution effect, Substitution Effect -  The  substitution effect is...

Substitution Effect -  The  substitution effect is change in an item's consumption associated with the change in the price of the item, level of utility held constant. -  Wh

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