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ICMA FMFQ Exam - Topic 5 Question 94 Discussion

What does the P/E ratio measure?
A) Price/Earnings
B) Profit/Earnings
C) Price/Estimated yield
D) Profit/Estimated yield

ICMA FMFQ Exam - Topic 5 Question 94 Discussion

Actual exam question for ICMA's FMFQ exam
Question #: 94
Topic #: 5
[All FMFQ Questions]

What does the P/E ratio measure?

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Suggested Answer: A

by Roosevelt at May 07, 2026, 01:33 AM

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Edna
3 days ago
Agreed! It’s a key metric for valuing stocks.
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Ozell
8 days ago
I think it’s A) Price/Earnings. That’s the standard definition.
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Tequila
14 days ago
Yeah, P/E is crucial for stock analysis.
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Elly
19 days ago
I hope everyone knows this for the exam!
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Brigette
24 days ago
Right, A is the way to go. Simple and clear.
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Lazaro
29 days ago
B is tempting, but it's not correct.
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Micah
1 month ago
Definitely A. It helps assess company value.
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Evangelina
1 month ago
I feel confident about that too. It's a key metric.
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Refugia
1 month ago
Agreed! A makes the most sense.
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Frank
2 months ago
I think it's A) Price/Earnings. That's the standard definition.
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Tanesha
2 months ago
Really? I always thought it was about estimated yield.
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Toi
2 months ago
No way, it's definitely Price/Earnings.
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Martha
2 months ago
Wait, I thought it was Profit/Earnings?
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Erasmo
2 months ago
Totally agree, it's A for sure.
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Kandis
3 months ago
It measures Price/Earnings!
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Zona
3 months ago
I definitely recall that the P/E ratio is related to price and earnings, but I can't remember if it's specifically A or something else.
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Levi
4 months ago
I feel like I might be mixing up the definitions. Wasn't there something about profit in the context of P/E ratios?
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Marleen
4 months ago
I remember practicing a question about financial ratios, and I think the correct answer is A) Price/Earnings.
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Bette
5 months ago
I think the P/E ratio stands for Price/Earnings, but I'm not entirely sure if that's the only interpretation.
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