Question A stock has a price/earnings ratio (p/e) of 4.5. earnings per share (eps) of these stocks is 8. what is the stockâ€™s market value?

The stocks market value is 36 per share. What is P/E Ratio of a Company? A price-to-earnings ratio (P/E) would be a popular metric used by investors and analysts to estimate the value of a business. Some key features of the P/E Ratio of a Company are- The P/E ratio can help you determine if a stock has been overvalued and undervalued. A company’s P/E ratio can also be compared to other stocks within the same market or the S&P 500 Index. The P/E ratio compares the value of the stock to the earnings of the firm. The P/E ratio represents whatever the market is ready to pay for a stock now based on previous or projected earnings. The current market price of the stock is represented by the letter “P” in the P/E ratio. Stock prices are determined by market supply and demand. Calculation for the market share values of the stock; A stock has a price/earnings ratio (p/e) of 4.5. The earning per stock is 8. P/E ratio = price per share/Earning per share Price per share = (P/E ratio)×(Earning per share) Price per share = 4.5 × 8 Price per share = 36 Therefore, the price of the stock’s market value is 36 per share. To know more about the P/E ratio, here https://brainly.com/question/14624614 #SPJ4 Reply

stocksmarket valueis 36 per share.## What is P/E Ratio of a Company?

price-to-earningsratio (P/E) would be a popular metric used by investors and analysts to estimate the value of a business.P/E Ratioof a Company are-market priceof the stock is represented by the letter “P” in the P/E ratio.Stock pricesare determined by market supply and demand.stock’s market valueis 36 per share.P/E ratio,herehttps://brainly.com/question/14624614#SPJ4