The P/E ratio compares a company's share price with its:
AFace value per share
BEarnings per share
CBook value per share
DDividend per share
Answer & Solution
Correct answer: B. Earnings per share
P/E is share price divided by EPS, used to judge whether a share looks over or undervalued.
Keep practising AS 20 Earnings Per Share
Browse all AS 20 Earnings Per Share questions for CA Inter, or explore more Accounting topics.
Related questions
P/E can also be found by market capitalization divided by:As a ratio of a stock to a flow, the P/E ratio has the units of:Forward P/E divides price by which earnings amount?Trailing P/E uses earnings from which period?A company earns an EPS of Rs 12.50 and trades at Rs 150. Its P/E ratio is:A share trades at $24 and its EPS is $3. Its P/E ratio is:Adjusted price charts divide pre-split closing prices by:Which split ratio is among the most common?