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ICMA FMFQ Exam - 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?

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Suggested Answer: A

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

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Jaleesa
3 months ago
I thought it was Profit/Estimated yield?
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Annabelle
3 months ago
Wait, isn't it just about profit margins?
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Odette
3 months ago
Surprised to see people confused about this!
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Isreal
3 months ago
Totally agree, A is the right answer.
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Tiffiny
3 months ago
It's definitely Price/Earnings!
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Reuben
4 months ago
I feel like I’ve seen similar questions before, and they all pointed to Price/Earnings being the correct answer.
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Jerlene
4 months ago
I’m a bit confused; I thought it was Profit/Earnings, but now I’m second-guessing myself after reviewing.
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Cammy
4 months ago
I remember practicing a question about P/E ratios, and I think it was definitely related to price and earnings, so I’d go with A.
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Wilburn
4 months ago
I think the P/E ratio stands for Price to Earnings, but I'm not completely sure if that's the right choice.
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Shantay
4 months ago
I'm a little confused on this one. Is the P/E ratio related to the company's profits or its estimated future earnings? I'll have to review my notes to make sure I understand the difference between those concepts.
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Laine
5 months ago
Okay, I remember learning about the P/E ratio in my finance class. It's the ratio of a company's stock price to its earnings per share. So the correct answer is A, Price/Earnings.
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Carlee
5 months ago
Hmm, I'm a bit unsure about this one. I know the P/E ratio has something to do with the company's stock price and earnings, but I can't quite remember the exact definition. I'll have to think this through carefully.
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Vi
5 months 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
7 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
7 months ago
B) Profit/Earnings
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Cassi
7 months ago
I think it measures the company's stock price relative to its earnings per share.
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Jodi
7 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
6 months ago
A) Price/Earnings
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Horace
7 months ago
D) Profit/Estimated yield
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Irma
7 months ago
C) Price/Estimated yield
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Tammi
7 months ago
B) Profit/Earnings
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Louis
7 months ago
A) Price/Earnings
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Della
7 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
7 months ago
Yeah, the P/E ratio is a classic measure in finance.
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Ronald
7 months ago
I agree, it's definitely Price/Earnings.
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Justine
8 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
7 months ago
B) Profit/Earnings
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Oretha
7 months ago
I agree, the P/E ratio is a fundamental concept in finance.
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Erin
7 months ago
A) Price/Earnings
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Eura
8 months ago
A) Price/Earnings
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Romana
8 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
7 months ago
B) Profit/Earnings
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Eulah
7 months ago
That's correct! The P/E ratio measures the Price/Earnings of a stock.
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Antonette
7 months ago
A) Price/Earnings
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