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that is placed on a company tradiing.?what the company is worth ?new too investing in the market,how do you firgure out the p/e ratio,where or how is this firgured out?

2006-12-05 06:39:43 · 5 answers · asked by lonearnie 1 in Business & Finance Investing

5 answers

Market cap or market capitalization is the market price of the stock multiplied by the number of stocks of the company outstanding.
P/e ratios is the earnings multiple meaning number of times the earnings of a company is to be multiplied to fetch the market price. It is simply the market price divided by earnings per share of a company.

2006-12-06 03:57:27 · answer #1 · answered by Mathew C 5 · 0 0

What the company is worth according to the market(market value), (number of shares x share price). P/E is the price of a share divided by the earnings per share. Or market cap divided by total earnings, it should be the same.

2006-12-05 06:45:44 · answer #2 · answered by Gustav 5 · 1 0

market cap is the value of the company determined by multiplying the number of shares outstanding by the stock price.

2006-12-05 06:42:29 · answer #3 · answered by cinsingl83 3 · 0 0

With thousands of stocks to choose from, developing a systematic approach to evaluating stocks can make it easier to make your selections. The first step is to narrow the options from the thousands of possible choices to ones most likely to meet your objectives. That typically involves screening companies based on criteria important to you. For instance, if you are interested in growth stocks, you might look for earnings growth over a certain percentage. Or for value stocks, you might look for companies with low price/earnings ratios or low price-to-book values. continue reading at http://ibooyah.com

2006-12-05 07:07:19 · answer #4 · answered by buklao 3 · 0 0

MARKET CAP.=CMP x TOTAL NUMBER OF SHARES

2006-12-08 19:51:32 · answer #5 · answered by Anonymous · 0 0

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