Equity Valuation

Price-to-Earnings Ratio

Definition

What is Price-to-Earnings Ratio?

Example in practice

A ₦100 share with ₦10 EPS trades at 10 times earnings.

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Net income attributable to ordinary shareholders divided by weighted average ordinary shares.

Earnings per share assuming potentially dilutive securities convert into ordinary shares.

Earnings per share calculated using actual weighted average ordinary shares outstanding.

Cash generated or used by a company's core operations.

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