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jumpman023
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Joined: 09 Jun 2009
Location: United States
Online Status: Offline
Posts: 90

Posted: 27 Nov 2009 at 13:28 \| IP Logged

Hi,

I need to calculate the price-earnings ratio for an accounting project, and I can't figure out how to calculate the market price per common share, and I can't figure out which earnings per share to use (the basic or diluted) for the ratio.

Here are the links to the income statements for the companies I'm looking at. Let me know if you need the balance sheet as well:

http://yahoo.brand.edgar-online.com/displayfilinginfo.aspx?F ilingID=5836220-259952-263046&type=sect&TabIndex=2&a mp;companyid=11845&ppu=%252fdefault.aspx%253fcik%253d826 083

http://yahoo.brand.edgar-online.com/displayfilinginfo.aspx?F ilingID=6227652-261232-263719&type=sect&TabIndex=2&a mp;companyid=2035&ppu=%252fdefault.aspx%253fcik%253d3201 93

Alex2008
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Joined: 31 Aug 2009
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Posts: 174

Posted: 06 Dec 2009 at 11:22 \| IP Logged

I can not open the links.

tho9504
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Joined: 25 Nov 2009
Location: United States
Online Status: Offline
Posts: 196

Posted: 04 Jan 2010 at 21:14 \| IP Logged

EPS = Net Income/ Common Shares Outstanding (Weighted Average)

P/E Ratio = Market Price of Share / EPS

The Market share per price is the actual price of the stock which you could get from Yahoo Finance or Google Finance. That’s the market price.

I was not able to open the link, but you could get the EPS info from the Income Statement from the Edgar Online from 10Q (Quaterly Statements) or 10K (Annual Statements).

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