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Calculates P/E ratio to assess stock valuation relative to earnings and compare to market multiples.

Формула

P/E Ratio = Stock Price / Earnings Per Share

Водич корак по корак

  1. 1Enter current stock price
  2. 2Input earnings per share (EPS)
  3. 3Calculate and interpret P/E ratio

Worked Examples

Инпут
Stock $50, EPS $2.50
Резултат
P/E ratio = 20x
Stock appears moderately valued

Common Mistakes to Avoid

  • Using annual earnings instead of EPS
  • Comparing P/E across different industries without adjustment

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