Question
Byron Ltd reported ₹32,000 in earnings with 40,000
shares outstanding. The current market price is ₹18 per share and book value is ₹16. The P/E Ratio is _____Solution
Earnings Per Share (EPS) = 𝑇𝑜𝑡𝑎𝑙 𝐸𝑎𝑟𝑛𝑖𝑛𝑔𝑠 / 𝑁𝑜 . 𝑜𝑓 𝑆ℎ𝑎𝑟𝑒𝑠 = 32,000/40,000 = 0.80 P/E Ratio = 𝑀𝑎𝑟𝑘𝑒𝑡 𝑃𝑟𝑖𝑐𝑒 / 𝐸𝑃𝑆 18 / 0.80 =22.5
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