Not sure if I did this problem right.. please clarify? :confused:
A company has an EPS of $2.00
Cash flow per share of $3.00
Price/cash flow ratio of 8.0x
What is its P/E ratio?
Price Per Earnings Ratio = Market Value Per Share / Earnings Per Share (EPS)
8.0 x 3.00 = 24/2
P/E = 12X
