Consider the following financial information for Nestlé SA stock. What is Nestle's price-to-earnings ratio?
Nestlé
Stock price per share: $108.55
Earnings per share: $3.14
Price-to-book ratio: 6.3882

Question

Quizplus · Accepted Answer

The price-to-earnings ratio (P/E ratio) is calculated by dividing the stock price per share by the earnings per share.

P/E ratio = Stock price per share / Earnings per share

P/E ratio = $108.55 / $3.14 = 34.57

Therefore, the best choice is B.

Consider the Following Financial Information for Nestlé SA Stock