Price Earnings Ratio (PE ratio)

US Tech 100

21,403.60

-0.57%

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Key Figures

Price Earnings Ratio (PE ratio)

PE ratio, the most widely used investment measure, is calculated as the previous day's closing share price divided by the earnings per share-basic (EPS-basic). PE ratio is used to appraise a company's profit performance. Where a company's prospects are considered by the stock market to be good, then it is likely that the company's share price will rise, producing a higher PE ratio.

The calculation is as follows:

= share price / EPS-basic