I am trying to figure out the P/E ratio, mainly. But first I need to figure out the EPS (earnings per share). I have read that to calculate price/earnings ratios you must find its earnings of last year (e.g. If a stock is selling for $35 now and its earnings last year were $7 a share, the P/E ratio would be 5 [35/7=5]).
The formula for earnings per share, as I have looked up, is:
So for a Coca Cola share, its EPS of last year would be:
{$7098 (net income) - $0.31 ([?]dividends per share)}/174.83B (market cap.)4300861009
which would equal: 41.0771873186928074539156609203656e6502951351246515020778714962653e-86
It seems I have gone VERY wrong somewhere. Can anyone walk me through how to find Earnings per Share, so that I may calculate the current P/E of Coca Cola?
Here is where I am analyzing the stock from: http://www.theglobeandmail.com/globe-investor/markets/stocks/summary/?q=ko-N