If the closing price of a stock is $9.72 and the annual earnings per share is $1.62, find the P/E ratio. Simplify, if possible.
The P/E ratio for the stock is

The P/E (Price-to-Earnings) ratio is calculated using the formula:

\[
\text{P/E Ratio} = \frac{\text{Price per Share}}{\text{Earnings per Share}}
\]

In this case:
- Price per Share = $9.72
- Earnings per Share = $1.62

So,

\[
\text{P/E Ratio} = \frac{9.72}{1.62}
\]

Now, let's calculate the P/E ratio.

\[
\text{P/E Ratio} = 6
\]

The P/E ratio for the stock is **6**.

Would you like any further details or explanations? Here are 5 related questions you might find helpful:

1. What does the P/E ratio indicate about a stock?
2. How can I interpret whether a P/E ratio is high or low?
3. What are the limitations of using the P/E ratio for stock analysis?
4. How can the P/E ratio vary between different industries?
5. What other financial ratios are important for stock valuation?

**Tip:** A lower P/E ratio may suggest a stock is undervalued, while a higher ratio might imply overvaluation, depending on the industry norms.

If the closing price of a stock is $9.72 and the annual earnings per share is $1.62, find the P/E ratio. Simplify, if possible. The P/E ratio for the stock is

Discover how to calculate the P/E ratio of a stock with a closing price of $9.72 and annual earnings per share of $1.62. This example walks through the key finance concept of price-to-earnings ratio, suitable for students in Grades 9-12.

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