If I were doing a comparison of P/E ratios I would look at the quarterly(or year end) financial statements for earnings/share for that period and then find the price per share on the last day of each quarter (or year end) and then compute the P/E ratio
comparing daily P/E is a waste of time...but seeing how the ratio changes either quarterly or at the end of each financial year period may be useful to watch
It is not that critical unless the price moves a lot. Remember the 'e' is historic anyway so current p/e not showing much anyway.
Use the current price and payout given by the company.
I know the formula for p/e ratio is current price/earnings per share. However, I know that the stock price keeps on changing everyday. Does that mean that I have to solve for the p/e ratio everyday?
Furthermore, I am analyzing a financial statement dated December 2012. So should I use the current price (meaning the price for January 2014) to solve for its p/e ratio even though the historical stock price of that company in December 2012 is far more different than the stock price today?
