Price/Earnings Ratio is the relationship between a company's performance according to the income statement and its performance in the stock market. In addition, this equations is valuation ratio of a company's current share price compared to its per-share earnings.
Input Variables:
C- Current Market Price
N- Net Income
P- Preferred Dividends
W- Weighted Average Number of Common Shares Outstanding
Output for Formula:
Returns Price/Earnings Ratio