Formulas

A valuation ratio of a company's current share price compared to its per-share earnings For example, if a company is currently trading at $43 a share and earnings over the last 12 months were $1.95 per share, the P/E ratio for the stock would be 22.05 ($43/$1.95).
 * What Does //Price-Earnings Ratio - P/E Ratio// Mean?**

n general, a high P/E suggests that investors are expecting higher earnings growth in the future compared to companies with a lower P/E. However, the P/E ratio doesn't tell us the whole story by itself. It's usually more useful to compare the P/E ratios of one company to other companies in the same industry, to the market in general or against the company's own historical P/E. Read more: [|http://www.investopedia.com/terms/p/price-earningsratio.asp#ixzz1XsvLYysS]

Earnings Per Share




 * What Does //Earnings Per Share - EPS// Mean?**

The portion of a company's profit allocated to each outstanding share of common stock. Earnings per share serves as an indicator of a company's profitability.

Earnings per share is generally considered to be the single most important variable in determining a share's price. It is also a major component used to calculate the price-to-earnings valuation ratio.

Read more: [|http://www.investopedia.com/terms/e/eps.asp#ixzz1Xswndumj]

= ** Compound Interest Formula ** = ** P ** = principal amount (the initial amount you borrow or deposit) ** r ** = annual rate of interest (as a decimal) ** t ** = number of years the amount is deposited or borrowed for. ** A ** = amount of money accumulated after n years, including interest. //** n **// = number of times the interest is compounded per year || ** Example: ** ** Solution: ** //**P**// = 1500, //**r**// = 4.3/////100 = 0.043, //**n**// = 4, //**t**// = 6. Therefore, So, the balance after 6 years is approximately $1,938.84. ||
 * [[image:http://qrc.depaul.edu/StudyGuide/Compound%20Interest_files/image002.gif width="231" height="89" caption="Regular Compound Interest Formula"]]
 * An amount of $1,500.00 is deposited in a bank paying an annual interest rate of 4.3%, compounded //quarterly//. What is the balance after 6 years? ||
 * Using the compound interest formula, we have that