Homework answers / question archive / The P/E ratio, therefore, represents how much an investor needs to pay for every dollar of earnings the company has achieved in the previous financial period

The P/E ratio, therefore, represents how much an investor needs to pay for every dollar of earnings the company has achieved in the previous financial period

Finance

Share With

The P/E ratio, therefore, represents how much an investor needs to pay for every dollar of earnings the company has achieved in the previous financial period.

The table below provides information on the shares of Singapore’s three leading banks for 2018.

Required:

From the above information, which bank’s share represents good value? Explain.              

1 mark

What other factors should an investor consider when making the decision on which bank share to purchase in 2019?