P/E is an easy management for any iodin(a) to see the proportionality of a associations dower price to its per- sustainment dough. For exemplification, a P/E dimension of 10 kernel that the confederacy has $1 of annual, per-sh atomic number 18 lucre for both $10 in sh be price. Earnings by commentary are aft(prenominal) all taxes etc. A companies P/E ratio is calculated by dividing the flow rate mart price of one share of the companies line of products by the companies per share kale. The per share earning are calculated by dividing the companies trailing (but sometimes leading) earnings by the total number of stocks. So for example, if the company had made $50 million in the eruptgoing 12 months, and had 10 million stocks, their per share earning would be $5. Â Â Â Â Â Â Â Â To back up to fold my understanding of the P/E ratio I forget do two examples, one from the Business component of the November quaternary Toronto Star. Â Â Â Â Â Â Â Â For November 4ths example I chose the stock Amgen, which has the ID AMGN, and is on the Nasdaq market.
The PE for this stock is listed at 55, and the finale price per share was 58.54. If these are both factual numbers pool than all I would motivating to do to find out the trailing earnings of the company would be to divide the bell of the share by the PE. This would be 58.54/55, and the equation shows that the trailing earnings per share is $1.00. If you indirect postulate to get a large essay, order it on our website:
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