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We focus on providing fast, comprehensive, convenient collection of hundreds of Free online Calculators

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Price Earnings Multiple Calculator

 

Price Earnings Multiple Calculator





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Price Earnings Multiple Calculator helps calculating the Price Earnings Multiple



What is Price Earnings Multiple?

The Price Earnings Multiple (often shortened to the P/E ratio or the PER) is the ratio of a company's stock price to the company's earnings per share. The ratio is used in valuing companies.



The Formula of Price Earnings Multiple

Price Earnings Multiple = Price / Earnings



Example of Price Earnings Multiple

For example, if the market value of stocks equals 1,000,000 dollars and the net income equals - 100,000 dollars, the price/earnings ratio is 10

1,000,000 / 100,000

The Meaning is: an investor who buys the company for 1 million dollars, should wait for 10 years till he earns his money

The reason is - the company earns only 100,000 dollars per year.



interperating Price Earnings Multiple

A lower price/earnings ratio is better

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What is the ICalc website for?

Life is full of computational problems. Most of them can be solved simply. The ICalc calculator site includes hundreds of calculators that will help you solve a wide range of problems in many areas, such as health, economics, math, finance, and more.
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