Stocks, Forex and Other Money Matters

The PE ratio is undisputedly the most used ratio in the financial industrial.

So what is PE ratio?
PE equals share price / eps

Example:
XYC company
Price : 31 cents
Current Earnings = USD118,
No. of Shares = 400 millions
Earnings Per Share (eps) = 118 millions/400 millions = 5.9c

Therefore, PE = share price/eps = 31c/5.9c = 5.25

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