P/E: This is everyone’s favorite. It’s commonly referred to as the “PE.” This number is the company’s current market price divided by the company’s annual earnings per share (or EPS). Below is how you would calculate the P/E for JNJ. The current market price is: $64.95 The current EPS is: $3.48 Therefore, the P/E is the following: P/E = Price / EPS = $64.95 / 3.48 = 18.66
