Is it 1:5 or 5:1?Thanks for your help.. Created by Angie. business-finance-en - investing-en

If the price per share of a company’s stock is $15 and its earnings per share is $3, what is the P/E ratio?

Price/Earnings

Therefore £15/$3=5

The p/e ratio is a single number. The number of times the earnings goes into the price. Or the number of years it takes the earnings to pay back the cost (share price).

If you wanted a ratio it would be 5:1 but p/e is not expressed like that.

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