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Price earnings ratio

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A company has a net income of $850,000. It has 125,000 weighted average common shares outstanding and a market value per share of $115. The company's price earnings ration equals.

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PE Ratio
A company has a net income of $850,000. It has 125,000 weighted average common shares outstanding and a market value per share of $115. The company's price earnings ration equals.

Price to Earning ratio indicates the confidence of market towards the company. As per Investopedia "The P/E is sometimes referred to as the "multiple", ...

Solution Summary

Response helps in estimating price earnings ratio

$2.19