Question

"if shoffner inc., a publicly traded corporation, has a share price of $125, revenues of $15.35 per share, and profits of $5.25 per share, what is the p/e ratio for shoffner inc. shares?"

Answer 1

The price-earnings ratio (P/E ratio) is the ratio for valuing a company that measures its current share price relative to its per-share earnings.

It is calculated by dividing the share price of the company by the profit (earnings) per share of the company.


Given that Shoffner Inc., has a share price of $125, and profits of $5.25 per share, then the p/e ratio for Shoffner Inc. shares is given by $125 / $5.25 = 23.81