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ADVFN HomeHelpFinancialsKey FiguresPrice Earnings Ratio (PE ratio)
Key Figures
  Market Capitalisation
  Shares in Issue
  Previous Close (price)
  Price Earnings Ratio (PE ratio)
  Dividend Cover
  Cash Flow PS
  Return on Equity (ROE)
  Operating Margin
  PE Growth (PEG) Factor
  EPS Growth Rate
  DPS Growth Rate
  Net Debt
  Gross Gearing
  Quick Assets
  Net Working Capital
  Intangibles/Fixed Assets
  Turnover PS
  Pre-Tax Profit PS
  Retained Profit PS
  Cash PS
  Net Cash PS
  NTAV PS
  NAV PS
  Spread

Price Earnings Ratio (PE ratio)

PE ratio, the most widely used investment measure, is calculated as the previous day's closing share price divided by the earnings per share-basic (EPS-basic). PE ratio is used to appraise a company's profit performance. Where a company's prospects are considered by the stock market to be good, then it is likely that the company's share price will rise, producing a higher PE ratio.

The calculation is as follows:

= share price / EPS-basic