Let's assume that you are looking to invest in a company that is financially stable and has a good market value. We can find out the best company for this using the following ratios:
- EPS: This can be useful ratio for finding the best company to invest in because it shows you how much money the company makes as profit for each share that the company sells
- P/E ratio: This ratio tells you that there might be more growth in the future of the company, and it also shows you how much an investor is willing to pay for a share
We will go through the following steps to use these ratios:
- Open the CompanyInvestment.xlsx file, where you will find details about some companies, such as their PAT, number of shares, and the market price of each share, as shown in the following screenshot:
- Now, we will calculate the EPS for each company...