The first of these terms, a fairly commonly used one, is the PE (Price to Earnings) ratio. To calculate this, you will need to know the total revenue of the company in the latest financial year (also called total earnings), and the total number of shares that are publicly available to trade on the exchange for that company. For example, company A has a total earning of 1000 rupees in the year 2014 and there are ten shares of it that are publicly traded on the exchange. If you divide the first by the second, you get the company’s total earnings per share, also called EPS. (On most online
...more
