The formula to calculate the Price/Earnings (P/E) Ratio is:
\[ \text{P/E Ratio} = \frac{\text{Share Price}}{\text{Earnings per Share}} \]
The Price/Earnings (P/E) Ratio is a measure that compares the price of a company's stock to its earnings per share. It indicates how much investors are willing to pay for $1 of earnings.
Let's assume the following:
To calculate the P/E Ratio:
\[ \text{P/E Ratio} = \frac{25.00}{1.80} \approx 13.89 \]
Therefore, the P/E Ratio is approximately 13.89.
