What is a Price-To-Earnings (P/E) Ratio?

The P/E ratio is determined by dividing the current price of a common share by the earnings per common share (EPS) for the latest reporting period in order to determine a company’s value in the marketplace.

For example, an accountant reviews the Price-To-Earnings (P/E) Ratio to assess the company's financial health and prepare for tax season.

Conçu pour les entreprises. Soutenu par l'expérience.