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Price-Earnings Ratio Solution

STEP 0: Pre-Calculation Summary
Formula Used
price_earnings_ratio = Market price per share/Earnings per share
P/E = P/EPS
This formula uses 2 Variables
Variables Used
Market price per share- Market price per share is simply the dollar amount that investors are willing to pay for one share of the company's stock.
Earnings per share- Earnings per share (EPS) is the portion of a company's profit allocated to each outstanding share of common stock.
STEP 1: Convert Input(s) to Base Unit
Market price per share: 50 --> No Conversion Required
Earnings per share: 700 --> No Conversion Required
STEP 2: Evaluate Formula
Substituting Input Values in Formula
P/E = P/EPS --> 50/700
Evaluating ... ...
P/E = 0.0714285714285714
STEP 3: Convert Result to Output's Unit
0.0714285714285714 --> No Conversion Required
FINAL ANSWER
0.0714285714285714 <-- Price-Earnings Ratio
(Calculation completed in 00.016 seconds)

2 Other formulas that you can solve using the same Inputs

Price Sales Ratio
price/sales_ratio = Market price per share/(Total Sales for Past 12 Months/Market Cap) Go
Price Book Value Ratio
price/book_value_ratio = Cash Dividend/Market price per share Go

Price-Earnings Ratio Formula

price_earnings_ratio = Market price per share/Earnings per share
P/E = P/EPS

How to Calculate Price-Earnings Ratio?

Price-Earnings Ratio calculator uses price_earnings_ratio = Market price per share/Earnings per share to calculate the Price-Earnings Ratio, The Price-earnings ratio (P/E ratio) is a valuation measure that compares the level of stock prices to the level of corporate profits, providing investors with a sense of a stock’s value. Price-Earnings Ratio and is denoted by P/E symbol.

How to calculate Price-Earnings Ratio using this online calculator? To use this online calculator for Price-Earnings Ratio, enter Market price per share (P) and Earnings per share (EPS) and hit the calculate button. Here is how the Price-Earnings Ratio calculation can be explained with given input values -> 0.071429 = 50/700.

FAQ

What is Price-Earnings Ratio?
The Price-earnings ratio (P/E ratio) is a valuation measure that compares the level of stock prices to the level of corporate profits, providing investors with a sense of a stock’s value and is represented as P/E = P/EPS or price_earnings_ratio = Market price per share/Earnings per share. Market price per share is simply the dollar amount that investors are willing to pay for one share of the company's stock and Earnings per share (EPS) is the portion of a company's profit allocated to each outstanding share of common stock.
How to calculate Price-Earnings Ratio?
The Price-earnings ratio (P/E ratio) is a valuation measure that compares the level of stock prices to the level of corporate profits, providing investors with a sense of a stock’s value is calculated using price_earnings_ratio = Market price per share/Earnings per share. To calculate Price-Earnings Ratio, you need Market price per share (P) and Earnings per share (EPS). With our tool, you need to enter the respective value for Market price per share and Earnings per share and hit the calculate button. You can also select the units (if any) for Input(s) and the Output as well.
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