In cell B7, input the formula "=B6/B5" to render the EPS ratio. Earnings per share (EPS) is an important profitability measure used in relating a stock's price to a company's actual earnings.

It shows what the market is willing to pay for a stock based on its past or future earnings. The P/E ratio is calculated by dividing the market value price per share by the company’s earnings ...

To calculate a company's P/E ratio, divide the price of one share of that company's stock by the earnings per share (often abbreviated EPS) of that company’s stock over a period of 12 months.

ratio. To calculate earnings per share, divide a company’s annual or quarterly profit by the number of shares of stock it has outstanding. Note: If a company has both preferred and common ...

Reviewed by JeFreda R. Brown The financial services sector is one of the most important drivers of the U.S. economy. The sector comes with different risks, which tend to change based on individual sub ...

So, what is the price-earnings ratio, or P/E ... is overvalued or undervalued. The formula for calculating P/E is fairly simple: P/E = market value per share/earnings per share You'll have ...

You can also calculate the dividend payout ratio by taking the dividend per share and dividing by the earnings per share, or EPS: Dividend per share / earnings per share = dividend payout ratio $4 ...