Description
The earnings-price (E/P) ratio or alternatively the price-earnings (P/E) ratio measures the market value of a company relative to its earnings. Firms with same level of earnings, having similar size, and belonging to same industry may have differences in their E/P ratios. Because market price shows investors’ expectations about future earnings as compared to current earnings.
doc_259323330.pdf
The earnings-price (E/P) ratio or alternatively the price-earnings (P/E) ratio measures the market value of a company relative to its earnings. Firms with same level of earnings, having similar size, and belonging to same industry may have differences in their E/P ratios. Because market price shows investors’ expectations about future earnings as compared to current earnings.
doc_259323330.pdf