Price against earnings.
A worked example
Starting figures
- Share price
- $120
- Earnings per share
- $6
What it returns
- P/E ratio
- 20.0
- Earnings yield
- 5.00%
How to read the results
With the defaults above, p/e ratio works out at 20.0.
Price against earnings.
P/E ratio
20.0
Earnings yield
5.00%
With these inputs, p/E ratio comes to 20.0. Earnings yield works out to 5.00%.
| Input | −10% | Now | +10% |
|---|---|---|---|
| Share price | 18.0 | 20.0 | 22.0 |
| Earnings per share | 22.2 | 20.0 | 18.2 |
Save this set of inputs, change something, then save again to compare the outcomes side by side.
Price against earnings.
With the defaults above, p/e ratio works out at 20.0.