What is profit earning ratio?

Answer Posted / bindu

It is ratio between market value per share and earnings per
share

Profit earning ratio - Market value per share / earnings
per share

Please note that investor cannot take buy or sell decision
based on PE ratio. But it will useful for comparision
between stocks in the same industry.

Is This Answer Correct ?    3 Yes 1 No



Post New Answer       View All Answers


Please Help Members By Posting Answers For Below Questions

What is Budgeted capital ?

1522


What is the Purpose of Preparing Bank Reconciliation Statement?

1596


Expand---------PDCB

1515


I want to become CFA so kindly provide me all information regarding this like fees structure,colleges in mumbai,duration etc.

1303


What is the Branch Accountant Responsbilities ?

3191






Rs. 23.50 ( Rupes twenty three & paise fifty only) what is euro Conversion?

1638


What is functional area,trading partner in sap fico

1573


How do you manage the sales account in tally

1578


why would you like to opt nbp

1532


can i have practical examples of AS-30

1947


the total of a firm id a rs.6.4 lakh.he has gross profit margin 15% curre ratio of rs.2.5 the firm current libility is rs.96000,inventry, rs.48000 and cash rs 16000. determine the average inventry of firm iss 5 times determine the avg collectin period of opening balance.

1536


My balance sheet is tallied. But there is a difference of RO 1 in cash flow. How to adjust ?

1528


how there face in lvbank interview

1606


Please send me full details of MIS report how to prepare which item to be consider in MIS report? 2) full details of Esic, PF and Fbt and maharashtra labour welfare fund

1796


Dear all, Could you suggest me that if got a job in a/cs in Big org but on payroll of Outsourcing company,What should to prefer the company payroll or job the ?

1621