Price earning ratio is equal to market price per equity share divided by ........

Accountancy (Phase -I & II) Ratio analysis

Download Solution PDF

Price-earning ratio is equal to market price per equity share divided by ___

Earning per share

Current assets

Current liabilities

Liquid assets

छोटे Courses बड़े Results

Master Ratio analysis

Prepare through Micro-courses

Try Now

Explanation:

The price to earnings ratio (PE Ratio) is the measure of the share price relative to the annual net income earned by the firm per share. PE ratio shows current investor demand for a company share. A high PE ratio generally indicates increased demand because investors anticipate earnings growth in the future.