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Earnings per Ratio

This topic has 1 reply, 2 voices, and was last updated 3 years ago by P2-D2.

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February 8, 2022 at 5:50 am #648267
James124
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“EPS is used to calculate price earnings ratio”.
Can you please explain this sir?
February 9, 2022 at 9:04 pm #648395
P2-D2
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Yes, the P/E ratio is the price per share divided by the earnings per share (EPS. In this case w take the quoted share price and divide by the calculated EPS.
Thanks
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