- This topic has 1 reply, 2 voices, and was last updated 8 years ago by
.
Viewing 2 posts - 1 through 2 (of 2 total)
- Posts
BPP Mcq#212 DDco
Sir i try to understand this by reviewing ans but i cant..
how he compare both companies
I shell be very thankful if you explain me in simple way..If possible..
The PE ratio is the market value divided by the earnings per share.
The earnings yield is the earnings per share as a % of the market value.
So the PE = 1/earnings yield, and vice versa.
So if the PE ratio is 12, then the earnings yield = 1/12 x 100% = 8.33%
If the earnings yield is 10%, then the PE ratio = 1/10 x 100 = 10I do explain somewhere in one of the lectures what we mean by the PE ratio and earnings yield.
Viewing 2 posts - 1 through 2 (of 2 total)
- The topic ‘Business Valuation’ is closed to new replies.