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Day 29 · P/E is a ratio, not a recommendationYear 11 Maths · T1 W5–6 · Day 29 lesson

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Year 11 / Mathematics / Term 1 / Weeks 05 06

Part of the full two-week lesson sequence. Check the pack guide and taught point before teaching.

Open for this lesson: Pack guide · Worked swaps · Fresh learner checks · Aids and text routes.

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Teacher copy: This page may include teaching prompts or answer keys. Answer keys in this public library can be viewed by anyone. Give learners a clean prompt, use checks as formative evidence, and change a case locally when prior access matters.

Learner choices

Goal: calculate two fictional price-to-earnings ratios and reject an unsupported investment ranking. 25 = 2 + 5 + 6 + 7 + 5.

  1. 0–2: Card N2 gives market price and annual earnings per share for Cedar and Slate. Confirm the units match one share.
  2. 2–7: Model Cedar $30÷$2=15 and Slate $36÷$3=12. Label both P/E ratios, not 15% and 12%.
  3. 7–13: Learners reverse-check 15×$2=$30, 12×$3=$36; list absent growth, debt, risk, accounting quality and time context. Lower P/E alone cannot select a share.
  4. 13–20: Routes: build price strips from repeated earnings-per-share tokens on the share measures aid; fill a two-company comparison table; write/voice two divisions plus a scope sentence. Optional rate switch is not relevant here; use paper or calculator.
  5. 20–25: Exit “Can we call Slate the better investment because 12<15?” Key: no; ratio alone is insufficient. Move: ask for one missing decision input before any comparative claim.

Alternative domains: wholly fictional publishing or game-studio company cards. Optional/home: make a ratio for invented price $20 and earnings/share $2; no real-market lookup. Two optional swaps.

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