Question

Company Earnings per Share Market Value per Share

Hilton $ 12.00 $ 176.40
SPG 10.00 96.00
Hyatt 7.50 93.75
Accor 50.00 250.00
Compute the price-earnings ratio for each of these four separate companies.
Price-Earnings Ratio
Company Choose Numerator: Divided by Choose Denominator: Price-Earnings Ratio Price-earnings ratio
Hilton
SPG
Hyatt
Accor

Answer 1

The Price-Earnings Ratio is computed by dividing the market value per share by the earnings per share. For Hilton, SPG, Hyatt, and Accor, the P/E Ratios are 14.7, 9.6, 12.5, and 5.0, respectively.

Step-by-step explanation:

The Price-Earnings Ratio (P/E Ratio) is calculated by dividing the market value per share by the earnings per share (EPS). For each company listed, the P/E Ratio can be computed as follows:

• Hilton: Market Value per Share ($176.40) / Earnings per Share ($12.00) = P/E Ratio of 14.7
• SPG: Market Value per Share ($96.00) / Earnings per Share ($10.00) = P/E Ratio of 9.6
• Hyatt: Market Value per Share ($93.75) / Earnings per Share ($7.50) = P/E Ratio of 12.5
• Accor: Market Value per Share ($250.00) / Earnings per Share ($50.00) = P/E Ratio of 5.0

The Price-Earnings Ratio is computed by dividing the market value per share by the earnings per share. For Hilton, SPG, Hyatt, and Accor, the P/E Ratios are 14.7, 9.6, 12.5, and 5.0, respectively.

Answer 2

Price-Earnings Ratio = Market Value Per Share / EPS

Hilton Price-Earnings Ratio = 176.40 / 12

Hilton Price-Earnings Ratio = $14.7

SPG Price-Earnings Ratio = 96.00 / 10.00

SPG Price-Earnings Ratio = $9.6

Hyatt Price-Earnings Ratio = 83.75 / 7.50

Hyatt Price-Earnings Ratio = $12.5

Accor Price-Earnings Ratio = 250.00 / 50.00

Accor Price-Earnings Ratio = $5.0