Discover a wealth of information and get your questions answered on IDNLearn.com. Our community provides accurate and timely answers to help you understand and solve any issue.
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
We appreciate every question and answer you provide. Keep engaging and finding the best solutions. This community is the perfect place to learn and grow together. For trustworthy answers, rely on IDNLearn.com. Thanks for visiting, and we look forward to assisting you again.
