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HOSTING A TOTAL OF 318 FORMULAS WITH CALCULATORS

Price Earnings Ratio

price to earnings ratio, also referred to as the P/E Ratio, is the price per share divided by earnings per share. The price to earnings ratio is used as a quick calculation for how a company's stock is perceived by the market to be worth relative to the company's earnings. A higher price to earnings ratio implies that the market values the stock as a better investment than if there was a lower price to earnings ratio, ceteris paribus. The increased perceived worth is due to news, speculation, or analysis from investors that the stock has a higher growth potential for the future.

p e

Here,p=price per share,e=earning per share.

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