c_earnings_to_price#
- c_earnings_to_price(c_last_twelve_months_net_income, c_market_cap)[source]
Calculate the earnings-to-price (E/P) ratio.
The E/P ratio is calculated using last twelve months net income and market capitalization.
- Parameters:
c_last_twelve_months_net_income (DataColumn) – The net income over the last twelve months.
c_market_cap (DataColumn) – The market capitalization.
- Returns:
The earnings-to-price ratio.
- Return type:
Notes
Earnings-to-price ratio is calculated as:
\[\frac{\mathrm{Net\ Income}}{\mathrm{Market\ Cap}}\]In Excel, assuming net income in column A and market cap in column B (starting at cell A2):
In cell C2, enter:
=A2/B2
Drag the formula down to apply it to the remaining rows.