Question

i've been asked to ifnd the price-earning ratio of some stocks

i'm unsure of how to do this

I do not know which EPS value to use as I found some valeus on a website...

Like for this company that I got a stock for

h t t p : / / w w w . m a r k e t w a t c h . c o m / i n v e s t i n g / s t o c k / G N B T / f i n a n c i a l s

what values do i use and what do i do about the negative net income? also which net income do i use??

Could you please show me how to calculate the price earning ratio of this company using that website thanks

Answer 1

like i know i need the shares outstanding but am unsure of which one

so could you please show me how to perform this calculation using the values on this website and what value exactly i'm suppose to use as there are many of the same name with like different variations i guess i don't know this is confusing

Answer 2

To figure the price/earnings ratio (PE), divide the current price by the earnings per share. I agree that site is confusing, but apparently the chart shows the earnings per share for the last 4 years. Use the 2009 earnings in the left column.

Basic EPS Total -0.32 -0.33 -0.22 -0.90

http://www.marketwatch.com/investing/stock/GNBT/financials

Today's closing price was $0.56 so the current PE ration is -1.75. Many analysts just report "no meaningful figure (NMF) for a negative PE.

That's all there is to figuring the PE ration. You don't need to know the number of outstanding shares.