Looking for trustworthy answers? Westonci.ca is the ultimate Q&A platform where experts share their knowledge on various topics. Experience the ease of finding reliable answers to your questions from a vast community of knowledgeable experts. Get precise and detailed answers to your questions from a knowledgeable community of experts on our Q&A platform.
Sagot :
Song corporation stock price at the end of last year was $26.25 and its earnings per share for the year were $1.30. 26.25 / 1.30 = 20.19 was its p/e ratio.
The price-earnings ratio, sometimes referred to as the P/E ratio, P/E, or PER, measures the relationship between a company's share price and its earnings per share. To determine if a company is overvalued or undervalued, the ratio is employed to determine its value.
However, many value investors would use a P/E ratio range of 20 to 25 as the typical range to give you an idea of what the market average is. Like in golf, a company's P/E ratio indicates how good an investment it is, with a lower ratio indicating a better investment. The current stock price of a company is divided by its earnings per share to produce the P/E ratio (EPS).
To know more about price-earnings ratio, refer:
https://brainly.com/question/15520260
#SPJ4
Thank you for choosing our platform. We're dedicated to providing the best answers for all your questions. Visit us again. We hope you found what you were looking for. Feel free to revisit us for more answers and updated information. Westonci.ca is here to provide the answers you seek. Return often for more expert solutions.