ICICI Bank BizCircle GlobalLinker
ICICI Bank BizCircle GlobalLinker
GlobalLinker

Price-Earnings Ratio - Business concept of the day

Price-Earnings Ratio - Business concept of the day

Business Development

GlobalLinker Staff

GlobalLinker Staff

11 Oct 2018, 11:47 — 1 min read

Definition: The Price-Earnings Ratio refers to a ratio of a stock price to company's earnings per share (EPS), This ratio is widely used to value companies, usually publicly traded companies.

Example: It is calculated by dividing the price of the stock by earning per share of the company. For example, if a stock is trading at $30 & its earnings per share for the year ended was $10, then Price-Earnings ratio will be 30/10 or 3. 

Business Insight: It is widely used by analysts to predict stock prices based on the earnings forecasts. 

 

Posted by

GlobalLinker Staff

We are a team of experienced industry professionals committed to sharing our knowledge and skills with small & medium enterprises.

Recommended articles for you

Got an inspiring story?
Get featured on SME inspirations

Already a member?

Sign In

Got an inspiring story?
Get featured on SME inspirations

Already a member?

Sign In

ICICI Bank BizCircle GlobalLinker - GET THE BIG BUSINESS ADVANTAGE

Visit mobile site