The goal of this article is to teach you how to use price to earnings ratios (P/E ratios). We’ll look at Huali University Group Limited’s (HKG:1756) P/E ratio and reflect on what it tells us about the company’s share price. Huali University Group has a price to earnings ratio of 6.28, based on the last twelve months. That corresponds to an earnings yield of approximately 15.9%.

Check out our latest analysis for Huali University Group

How Do You Calculate A P/E Ratio?

The formula for P/E is:

Price to Earnings Ratio = Share Price (in reporting currency) ÷ Earnings per Share (EPS)

Or for Huali University Group:

P/E of 6.28 = CN¥2.692 ÷ CN¥0.429 (Based on the trailing twelve months to February 2020.)

(Note: the above calculation uses the share

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