PE RATIO

This topic has 2 replies, 3 voices, and was last updated 11 years ago by John Moffat.

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November 21, 2014 at 12:09 am #211770
Don
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KK plc has a market value of 3.20, dividend cover 3.0, dividend yield 4%, calculate the PE ratio?
November 21, 2014 at 9:42 am #211814
Stefano
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Dividend yield=dividend/share price=4%
Dividend= 4% 3.20=0.128 or 12.8 c
Dividend cover=EPS/dividend per share=3
EPS=3*0.128=0.384
PE=share price/EPS=3.2/0.384=8.33

Is that correct?
November 21, 2014 at 1:20 pm #211911
John Moffat
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Stefano’s answer is correct 🙂
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