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acctstudent123
Oct 11, 2008, 12:58 PM
I am a new accounting student and I am trying to find out the Price/Earning Ratio.
Can you please tell me what numbers in the Balance Sheet, Income Sheet, Statement Cash Flow that I would add to come up with both the Price/Share and the Earnings/Share. I know how many outstanding shares there are for the company I am reporting about.
I just don't know if the Price/Share is the stock price or something else. And I do I calculate the company's earnings so I can determine the Earnings/share.
Thanks in advance

pready
Oct 15, 2008, 05:52 PM
Price per Share is the purchase price of the Shares of stock + Capital paid in Excess of Par Divided by the number of Shares outstanding.

Next you need Earnings Per Share (EPS)
This is Net Income-Preferred Dividends / Average Common Stock Outstanding.

P/E is Price Per Share / Earnings Per Share