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    acctstudent123's Avatar
    acctstudent123 Posts: 1, Reputation: 1
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    #1

    Oct 11, 2008, 12:58 PM
    Price/share and earnings/share
    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's Avatar
    pready Posts: 3,197, Reputation: 207
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    #2

    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
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