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Ask extractive questions about a (long) financial document.
You can query a model directly and test the results returned when using
different parameter values with the Cloud console, or by calling the
Vertex AI API directly.
Using the diluted earnings per share (EPS) from FY2022 and the stock price based on the average price paid per share from November 1-30, 2022, calculate the P/E ratio for FY2022. Round answer to two decimal places. Explain the answer and point me to the evidence.
Response
Okay, let's calculate the P/E ratio for FY2022 based on the provided information.
1. Find the Diluted EPS for FY2022:
The document states that the diluted EPS for FY2022 was $8.33. (See page 12 of the document, under "Net Income")
2. Find the Average Stock Price:
The document provides the average price paid per share for the period of November 1-30, 2022, as $270.40. This information is found in the "Issuer Purchases of Equity Securities" table on page 26.
3. Calculate the P/E Ratio:
The P/E ratio (Price-to-Earnings ratio) is calculated as follows:
P/E Ratio = Stock Price / Diluted EPS
P/E Ratio = $270.40 / $8.33
P/E Ratio = 32.45
Therefore, the P/E ratio for FY2022 is 32.45.
Explanation:
The P/E ratio (Price-to-Earnings ratio) is a valuation metric that compares a company's current share price to its earnings per share. A higher P/E ratio generally indicates that investors are willing to pay a higher price for each dollar of earnings. In this case, the P/E ratio of 32.40 for McDonald's in FY2022 suggests that investors are willing to pay $32.45 for every $1 of earnings the company generates.
Evidence:
Diluted EPS: Page 12 of the document, under "Net Income"
Average Stock Price: Page 26 of the document, under "Issuer Purchases of Equity Securities" table.
[[["Easy to understand","easyToUnderstand","thumb-up"],["Solved my problem","solvedMyProblem","thumb-up"],["Other","otherUp","thumb-up"]],[["Hard to understand","hardToUnderstand","thumb-down"],["Incorrect information or sample code","incorrectInformationOrSampleCode","thumb-down"],["Missing the information/samples I need","missingTheInformationSamplesINeed","thumb-down"],["Other","otherDown","thumb-down"]],["Last updated 2025-09-04 UTC."],[],[],null,["Ask extractive questions about a (long) financial document.\n\n|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|\n| You can query a model directly and test the results returned when using different parameter values with the Cloud console, or by calling the Vertex AI API directly. - For an example of using the Vertex AI API, see [Quickstart using the Vertex AI API](/vertex-ai/generative-ai/docs/start/quickstarts/api-quickstart). - To view this sample in the Cloud console: [Go to Google Cloud console](https://console.cloud.google.com/vertex-ai/generative/language/prompt-examples/Financial%20QA%20-%20Extractive) \u003cbr /\u003e ||\n| Prompt Freeform [financial_qa_example_MCD_2022_10K.pdf](https://storage.mtls.cloud.google.com/cloud-samples-data/generative-ai/pdf/financial_qa_extractive.pdf) Using the diluted earnings per share (EPS) from FY2022 and the stock price based on the average price paid per share from November 1-30, 2022, calculate the P/E ratio for FY2022. Round answer to two decimal places. Explain the answer and point me to the evidence. Response Okay, let's calculate the P/E ratio for FY2022 based on the provided information. **1. Find the Diluted EPS for FY2022:** The document states that the diluted EPS for FY2022 was $8.33. (See page 12 of the document, under \"Net Income\") **2. Find the Average Stock Price:** The document provides the average price paid per share for the period of November 1-30, 2022, as $270.40. This information is found in the \"Issuer Purchases of Equity Securities\" table on page 26. **3. Calculate the P/E Ratio:** The P/E ratio (Price-to-Earnings ratio) is calculated as follows: P/E Ratio = Stock Price / Diluted EPS P/E Ratio = $270.40 / $8.33 P/E Ratio = 32.45 **Therefore, the P/E ratio for FY2022 is 32.45.** **Explanation:** The P/E ratio (Price-to-Earnings ratio) is a valuation metric that compares a company's current share price to its earnings per share. A higher P/E ratio generally indicates that investors are willing to pay a higher price for each dollar of earnings. In this case, the P/E ratio of 32.40 for McDonald's in FY2022 suggests that investors are willing to pay $32.45 for every $1 of earnings the company generates. **Evidence:** - **Diluted EPS:** Page 12 of the document, under \"Net Income\" - **Average Stock Price:** Page 26 of the document, under \"Issuer Purchases of Equity Securities\" table. | |------------------------|----------------------| | **Model:** | gemini-1.5-flash-002 | | **Temperature:** | 0.2 | | **Max output tokens:** | 8192 | | **TopK:** | 40.0 | | **TopP:** | 0.95 | |"]]
