The Price Earnings Ratio is the

Name: The Price Earnings Ratio is the
Brand: Quizplus
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Quizplus · Accepted Answer

The Price Earnings Ratio (P/E ratio) is calculated by dividing the market price of a share of ordinary share by its EPS (Earnings per Share). This ratio is used to compare the share price of a company with its earnings and determine if it is overpriced or underpriced. A higher P/E ratio suggests that investors are willing to pay more for each dollar of earnings, indicating a higher growth potential or riskier investment.

The Price Earnings Ratio Is the