The company's price-earnings ratio is 1.80/0.090=20%.
Profit margin is a measure of profitability. it is calculated by using finding the income as a percentage of the revenue. There are three styles of income margins: gross income margin, operating profit margin and net income margin. Gross income Margin is calculated as gross earnings divided via internet sales.
Profit margin is the degree of your enterprise's profitability. it's far expressed as a percent and measures how a whole lot of every dollar in sales or services that your corporation keeps from its profits. profit margin represents the company's internet earnings when it is divided by way of the net sales or sales.
Jupiter Explorers
Sale $ 10,400
Net Profit margin 4%
Net Profit $ 416
Outstanding stocks in the market 4,600
Earning per share = $416/4,600
=$ 0.090 per share
Price / share =$ 1.80
Therefore PE ratio = 1.80/0.090=20%
Therefore P/E ratio is 20%
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