The P/E ratio is a widely used measure calculated by dividing the market price on a given date by the earnings per share for the accounting period.

To estimate the market price for the date, look in the company’s annual report for the accounting period for the P/E ratio and earnings per share.

Multiply the two figures.

How do you calculate share price on a balance sheet?

To calculate this market value, multiply the current market price of a company’s stock by the total number of shares outstanding. The number of shares outstanding is listed in the equity section of a company’s balance sheet.

Where do you find share price on financial statements?

How Share Price Is Arrived At

  • Select the date for which you want to determine market price, then determine the company’s net income as of that date.
  • Subtract the dollar value of dividends the company has paid out.
  • Determine the number of outstanding shares.

How is the share price of a company calculated?


  1. Decide if market capitalization is the best valuation option.
  2. Determine the company’s current share price.
  3. Find the number of shares outstanding.
  4. Multiply shares outstanding number by the current stock price to determine the market capitalization.

How do I find a company’s annual report?

Business Research: Finding a Company’s Annual Report

  • Company Web sites. You can often find a company’s annual reports on the company’s own website.
  • Search Engines.
  • EDGAR.
  • ABI/INFORM Complete.
  • Hoovers.
  • Mergent Online.

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