If a company's P/E ratio is 10, that means its shares cost 10 times the profit it makes on a per-share basis in a year. To calculate a company's P/E ratio, divide the price of one share of that ...

The ratio has 2 parts that are orange - this gives the numerator of the fraction. Find the value of one part by dividing the whole by the total number of parts. Calculate the value of each share ...

It is the ratio of a company’s current share price relative to its earnings per share (EPS). The price to earnings ratio helps in understanding the growth potential of a company. High P/E Ratio ...