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P/E Ratio

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA FM Exams › P/E Ratio

  • This topic has 3 replies, 2 voices, and was last updated 5 years ago by John Moffat.
Viewing 4 posts - 1 through 4 (of 4 total)
  • Author
    Posts
  • February 21, 2021 at 1:31 pm #611207
    grahamegan
    Member
    • Topics: 20
    • Replies: 81
    • ☆☆

    Hi John,

    If, for example a question gave you the information to calculate the P/E ratio of that particular company but also gave you what a similar company’s P/E ratio was and then asked you to calculate the share price using the P/E ratio method, would you lose marks if you didnt use the similar company’s P/E ratio and instead used the actual company’s P/E ratio seeing as they gave you enough information to calculate it?

    Thanks
    Graham

    February 21, 2021 at 2:14 pm #611224
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 54830
    • ☆☆☆☆☆

    Probably yes, but it depends on exactly what the question was asking for.

    February 21, 2021 at 2:32 pm #611235
    grahamegan
    Member
    • Topics: 20
    • Replies: 81
    • ☆☆

    Thanks John

    February 22, 2021 at 7:40 am #611266
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 54830
    • ☆☆☆☆☆

    You are welcome 🙂

  • Author
    Posts
Viewing 4 posts - 1 through 4 (of 4 total)
  • The topic ‘P/E Ratio’ is closed to new replies.

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