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 LESSON LEARNED   Calculating price earning ratio (P/E ratio) for stocks.

 OTHER SKILLS REINFORCED Math - division

 SUGGESTED GRADE LEVELS 3+ Also for students being introduced to stocks.

 Suggested Money Lesson Give an introductory lesson about stocks to your students. Explain that one way that they can save their money is to invest, and one way that people invest is to buy stocks.   A price earning ratio, or "P/E" for short, is a commonly used way to simplistically value a company (determine what a company's stock should be worth). It is simply a company's stock price divided by a company's earnings per share. The price to earnings ratio, also known as "P/E", is calculated by dividing the company's stock price by the company's earnings per share, or "EPS".

 WORKSHEET Instructions This is a simple worksheet to give students practice calculating the price earnings ratio.   For each stock, have the student calculate the stock's dollar change (current stock price divided by earnings).

LEVEL 1 (Easiest)

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LEVEL 2

Use numbers after the decimal, increase

the number of shares, or change the maximum and minimum

money to spend to make this worksheet more difficult.

 Number of questions     1 2 3 4 5 6 7 8   Digits after the decimal 0 1 2     Face pictures                     Note - Requires FULL Membership

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