abhishreshthaa
Abhijeet S
PRICE EARNING RATIO (P.E.R.)
This ratio indicates the number of times the earning per share is covered by its market price. It is mainly concerned to the investors. In this ratio, the relationship is established between the market price of the share and the earning per share (EPS).
Formula:
Price Earning Ratio = Market Price per Share
Earning per Share
Significance:-
Price-earning ratio helps the investors in deciding whether to buy or not to buy the shares of the company at a particular market price.
This ratio indicates the number of times the earning per share is covered by its market price. It is mainly concerned to the investors. In this ratio, the relationship is established between the market price of the share and the earning per share (EPS).
Formula:
Price Earning Ratio = Market Price per Share
Earning per Share
Significance:-
Price-earning ratio helps the investors in deciding whether to buy or not to buy the shares of the company at a particular market price.