--%>
Assignment Help - homework help

Explain the term Price Earnings Ratio

Briefly explain the term Price Earnings Ratio (or P/E Ratio)?

E

Expert

Verified

Price earnings ratio (P/E Ratio) is the ratio that is among the market price per equity and earnings per share. High Price Ratio is employed to give suggestion to the investors concerning their higher earning expected growth in prospect. It is generally employed to compare the two P/E Ratio of various companies that are from the same industry. Investors must carefully note problems that arises with P/E Ratio measure to evade biasing decision on many company's measure.

   Related Questions in Business Economics

  • Q : Economic sense production methods

    Evaluate and explain the statements: “In the economic sense production methods are the most efficient methods, once resource prices are considered and are lesser in sense of engineering”.

    		•
  • Q : Need urgent help need urgent help in

    need urgent help in business economics, please suggest

    		•
  • Q : An Inquiry in the Nature and Causes The

    The first comprehensive work upon economics written within English was authored through Adam Smith in 1776 year and entitled that “An Inquiry within the Nature and Causes of: (1) Laws of Supply and Demand.” (2) Wealth of Nations.” (3

    		•
  • Q : Summary of what can cause a decrease in

    Illustrate a summary of what can cause a decrease in demand?

    		•
  • Q : Characteristics of Perfectly

    Perfect competition is characterized by all of the following except w) heavy advertising by individual sellers. x) homogeneous products. y) sellers are price takers. z) a horizontal demand curve for individual sellers.

    Q : Describe cost of equity shares Briefly

    Briefly describe cost of equity shares? And also write down way to evaluate the cost of equity shares?

    		•
  • Q : Invisible hand Describe the meaning of

    Describe the meaning of the term “invisible hand.”

    		•
  • Q : Production possibilities curve is a

    How a production possibilities curve is a graphical representation of choices?

    		•
  • Q : Argument by Adam Smith for a true

    Within the Wealth of Nations, argument by Adam Smith such that a nation’s true wealth is its capability to: (1) obtain stocks of financial capital. (2) inspire its people’s courage and diligence. (c) give

    		•
  • Q : Single seller not sell at a price lower

    An individual seller within perfect competition will not sell at a price lower than the market price since: w) demand for the product will exceed supply.  x) the seller would begin a price war. y) the seller can sell any quantity she desires at the prevailing mar

    		•