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.

Reviewed by David Kindness Fact checked by Vikki Velasquez The price-to-earnings ratio (P/E) is one of the most widely used ...

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.

The basic P/E formula simply divides the current stock price by the company's earnings per share. So let's say a company has a P/E ratio of 10. In effect, that means you'd be paying $10 for every ...