Price-Earnings Ratio

Question 1

How to calculate price-earnings ratio?

Answer 1

Share price of company’s stock/EPS

Question 2

Share price of company’s stock/EPS

Answer 2

How to calculate price-earnings ratio?

Question 3

What if a company has zero/negative earnings?

Answer 3

P/E ratio is N/A

Question 4

P/E ratio is N/A

Answer 4

What if a company has zero/negative earnings?

Question 5

What does a P/E ratio of 9.49?

Answer 5

Investors have to spend $9.49 for every generated dollar of annual earnings

Question 6

Investors have to spend $9.49 for every generated dollar of annual earnings

Answer 6

What does a P/E ratio of 9.49?

Question 7

A high P/E ratio means?

Answer 7

A stocks price is expensive relative to its earnings, meaning it could be overvalued

Question 8

A stocks price is expensive relative to its earnings, meaning it could be overvalued

Answer 8

A high P/E ratio means?

Question 9

What are company’s earnings based on?

Answer 9

Either historical or forward earnings, that are based on opinions of Wall Street analysts.

Question 10

Either historical or forward earnings, that are based on opinions of Wall Street analysts.

Answer 10

What are company’s earnings based on?