Computation of Price Earnings Ratio (P/E) using twelve months trailing and Leading EPS
The three stocks selected for the computation of the price-to-earnings ratios are Microsoft Corporation, Facebook Inc., and Apple Inc. The benchmark was the equity index S&P 500. The P/E ratio helps investors to assess the value of a firm. It is one of the most widely used multiples. There is a direct relationship between market expectation and the price multiple; hence, the company’s future performance can be determined. The price





