Answer Posted / sk pasha
Price- Earning Ratio:- it expresses the relationship between
market price of one share of a company and the earnings per
share of that company. It's calculated as
Market price of Equity share
----------------------------
EPS
Profit after tax - Preference Dividend
here EPS = ---------------------------------------
Number of Equity Shares
(OR)
The P/E Ratio has a lot of practical application in
forecasting the market price of a share. there is no ideal
P/E Ratio.
The inverse of the P/E ratio is called the Earning yield.
It's calculated as
1 E.P.S
---------- or ----------------
P/E ratio Market Price
Is This Answer Correct ? | 2 Yes | 1 No |
Post New Answer View All Answers
What is the relationship between, issued share capital, share premium and paid up capital?
what is OTC derivatives and Depository Trust & Clearing Corporation (DTCC) ?
why should the company give first perference to the perference shareholders?
how to calculate share values of a company.
plz send all previous question papers for SBI clerical post.My email id is mechabhilash6@gmail.com
How does the accounting treatment of a partner's salary differ from that of an employee's salary in a partnership?
What is Free Cash?
Can anyone give comparative data of NPA(non performing assets) of nationalised banks or BANKS IN INDIA for the last 5-10 years if possible with bifurcation substandard doubtful loss asset
Why are there 30 blue-chip companies only considered in bombay stock exchange.And why those thirty only effect the sensex
1. what is debenture? 2.Why company will issue shares? 3. What is audit? 4. What is the role of finance department? 5. What is mutual fund?
About Funding Working Capital to a Company? A company Turn over is 12 Cr, but in the bank statement credits per month is more that 3 Cr? how this could happen? awaiting your views?
What are motive behind mergers And acquisitions?
cost accounting process
which are company offering jobs in PORTFOLIO MANAGEMENT ?
what is the document spliting?