ICMA Exam FMFQ Topic 5 Question 82 Discussion

Actual exam question for ICMA's FMFQ exam

Question #: 82
Topic #: 5

[All FMFQ Questions]

What does the P/E ratio measure?

APrice/Earnings

BProfit/Earnings

CPrice/Estimated yield

DProfit/Estimated yield

Show Suggested Answer

Suggested Answer: A

by Annmarie at Jul 07, 2025, 08:23 PM

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Vi

1 days ago

I'm pretty confident the P/E ratio measures the price per share divided by the earnings per share. Option A seems like the right answer.

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Eura

2 months ago

Actually, it's A) Price/Earnings because it shows how much investors are willing to pay for each dollar of earnings.

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Marlon

2 months ago

B) Profit/Earnings

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Cassi

2 months ago

I think it measures the company's stock price relative to its earnings per share.

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Jodi

2 months ago

I mean, come on, P/E = Price/Earnings, it's not rocket science. This question is about as easy as counting to four... which is probably too challenging for some people.

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Ashley

5 days ago

A) Price/Earnings

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Horace

2 months ago

D) Profit/Estimated yield

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Irma

2 months ago

C) Price/Estimated yield

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Tammi

2 months ago

B) Profit/Earnings

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Louis

2 months ago

A) Price/Earnings

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Della

2 months ago

Haha, who would think the P/E ratio measures anything other than Price/Earnings? Options B, C, and D are just plain silly. A all the way!

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Junita

2 months ago

Yeah, the P/E ratio is a classic measure in finance.

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Ronald

2 months ago

I agree, it's definitely Price/Earnings.

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Justine

3 months ago

Definitely option A, P/E ratio. Kinda surprised this is even a question, it's one of the most basic concepts in finance.

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Delbert

2 months ago

B) Profit/Earnings

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Oretha

2 months ago

I agree, the P/E ratio is a fundamental concept in finance.

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Erin

2 months ago

A) Price/Earnings

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Eura

3 months ago

A) Price/Earnings

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Romana

3 months ago

P/E ratio measures the Price/Earnings, it's a fundamental metric to assess the valuation of a stock. This is a no-brainer, option A is the correct answer.

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Mari

2 months ago

B) Profit/Earnings

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Eulah

2 months ago

That's correct! The P/E ratio measures the Price/Earnings of a stock.

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Antonette

2 months ago

A) Price/Earnings

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