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Price to Earnings Ratio (PE Ratio)

Price to Earnings Ratio (PE Ratio)

The price to earnings ratio (or PE ratio) relates market price to earnings per share. This interactive tutorial explains the concept by walking you through the calculations, including where to find the numbers on the financial statements.


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Nikhil Murali
Nikhil Murali (Student)
10 years ago
This module helps explain the concept of the price to earnings ratio and some of its financial implications. The module merely walks one through the calculations of a fictitious company. There are no examples nor is there any kind of interactive section where one would get to practice calculating the P/E ratio. The module does not suffice as an effective teaching medium.