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peratics
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There are 8 letters in PERATICS ( A1C3E1I1P3R1S1T1 )
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The price/earnings ratio (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.* * * * P * * / * * E * = * * * Share Price * Earnings per Share * * * * * {\displaystyle P/E={\frac {\text{Share Price}}{\text{Earnings per Share}}}} * As an example, if stock A is trading at $24 and the earnings per share for the most recent 12-month period is $3, then stock A has a P/E ratio of 24/3 or 8. Put another way, the purchaser of the stock is investing $8 for every dollar of earnings. Companies with losses (negative earnings) or no profit have an undefined P/E ratio (usually shown as "not applicable" or "N/A"); sometimes, however, a negative P/E ratio may be shown. |