Question

Rudy’s stock is currently valued at $28.40 a share. The firm had earnings per share of $1.86 last year and projects earnings of $2.09 a share for next year. What is the trailing twelve month price-earnings ratio?

Answer 1

The trailing twelve month price-earnings ratio is 15.27.

Step-by-step explanation:

Trailing price-to-earnings (Trailing P/E) is the sum of a company's price-to-earnings, calculated by taking the current stock price and dividing it by the trailing earnings per share for the past 12 months. This measure differs from forward P/E, which uses earnings estimates for the next four quarters.

Trailing P/E Ratio

= current share price/trailing twelve months earnings per share

= 15.27

Therefore, The trailing twelve month price-earnings ratio is 15.27.