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If the net income is Rs 100 crore(1 billion) and P/E ratio is 20x and price per share is Rs 100, EPS is Rs 5, how many shares does the company have outstanding?
the answer is 20 crores( 200million) could you explain us how do you find this result?
Jun 13 2013 08:50 PM
So P/E = 20;
Number of shares outstanding will be Net income / EPS.
The net income is divided by the number of shares to get the earnings per share.
Jun 14 2013 09:47 AM
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