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An price to earnings (P/E) ratio shows the number of years to cover the initial capital spent in an equity investment. There is no real acceptable, and therefore unnacceptable P/E ratio, and depends on each investors personal expectations or goals. Except that generally a higher P/E ratio is better than a lower P/E ratio, for obvious reasons.

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15y ago

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How to find the price earnings ratio of a company?

To find the price-earnings ratio of a company, divide the current stock price by the earnings per share. This ratio helps investors assess the company's valuation and growth potential.


How can one find the price to earnings ratio of a company?

To find the price to earnings ratio of a company, divide the current stock price by the earnings per share. This ratio helps investors assess the company's valuation and growth potential.


What is an example of a market prospects ratio?

Price earnings ratio.


What affect does earnings per share have on price earnings ratio?

the price earnings ratio is simply earnings-per-share divided by the share price. OOPS! I got that upside down! It is the share price divided by the earnings per share. The earnings figure might be for the trailing twelve months (ttm) or earnings estimated for the next four quarters.


What is the pe ratio of a business?

Is the Price/Earnings ratio. You can find it by taking the market price per share and dividing it by the annual earnings per share.


What is the price-earning?

If you mean the price-earnings ratio. It is the price per share of a common stock divided by the annual earnings of the stock.


What is the Price and Earnings ratio when a company has an Earnings Per Share of 2.00 and a cash flow per share of 3.00 and a price and cash flow ratio of 8.0?

A company has an EPS of $2.00 Cash flow per share of $3.00 Price/cash flow ratio of 8.0x What is its P/E ratio? Price Per Earnings Ratio = Market Value Per Share / Earnings Per Share (EPS) 8.0 x 3.00 = 24 24/2 P/E = 12X


What factors might influence a firm's price-earnings ratio?

The price earnings ratio is influenced by: -the earnings and sales growth of the firms -risk -debt-equity structure of the firm -dividend policy -quality of management -a number of other factors


A firm with earnings per share of 5 and a price-earnings ratio of 15 will have a stock price of?

Just use 5 times 15. $75.


What are some financial variables that affect the price earnings ratio?

interest rate


What is the current FTSE price earnings ratio?

http://www.ftse.com/Indices/UK_Indices/Values.jsp


What is the typical Price to Earnings ratio for a service business?

about five to six times EBIT