2007-11-01 14:01:57 · 3 answers · asked by daykl13 1 in Business & Finance ➔ Investing
The P/E ratio is the share price divided by the EPS. (No percentages.)
You can check this calculation on Yahoo Finance or MSN Money & compare it to the listed P/E ratio. Often the two numbers match up well, but sometimes they do not.
Usually the EPS refers to the diluted EPS, which assumes that all outstanding convertible bonds and prefered stocks are converted to common stock. I'm not sure, but I think the standard P/E ratio listing does not use diluted share quantities.
2007-11-01 15:57:59 · answer #1 · answered by Tom H 4 · 0⤊ 0⤋
PE ratio is EPS divided by share price and expressed as a percentage.
2007-11-01 14:05:54 · answer #2 · answered by B.Kevorkian 7 · 1⤊ 1⤋
PE=EPS/stock price.
See http://www.stockpickguide.com/article/pe.php for further information
2007-11-02 02:07:37 · answer #3 · answered by Anonymous · 0⤊ 0⤋