Type the Excel formula for the P/E ratio, with the share price in B1, net income in B2 and shares outstanding in B3.
Type the Excel formula for the P/E ratio, with the share price in B1, net income in B2 and shares outstanding in B3.
Answer
=B1/(B2/B3)
Price ÷ EPS = 45 ÷ (24,000,000 ÷ 8,000,000) = 15.0.
Bigel, Introduction to Financial Analysis (CC BY 4.0) §7.2–7.4 — two-firm comparison shape only (numbers ours); OpenStax Principles of Finance §11.1 — reference only; original company and figures