top of page
  • Linkedin
  • What it does: Calculates the relationship between the market price of a stock and its earnings per share (EPS).

  • How it works: It divides the price per share by the earnings per share, showing how many times investors are willing to pay for the company's earnings.

  • Calculation: Divide the market price of the stock by the earnings per share.

  • Usage: Fundamental for evaluating the profitability and valuation of a stock.

  • Formula: P/E = Share Price / Earnings per Share (EPS)

bottom of page