Question

where P is the price of the stock and E is the earnings per share.​ Recently, the price per share of a certain company was ​$ and the earnings per share were ​$. Find the​ price-earnings ratio. g

Answer 1

the information is incomplete but we can assign some numbers just to serve as an example:

suppose that the stock's price is $60, and the earnings per share (EPS) is $1.50, the price earnings ratio will be:

price earnings ratio = stock price / earnings per stock = $60 / $1.50 = 40