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Starting and Operating a Business

Section 7.1

To calculate the P/E ratio for each stock you need the current price and earnings for the previous year. Use the same web site you've been using for stocks in 5.1 and 5.4.

http://www.fool.com/

Use the Quotes and Data tab to get the current price of each stock as you did in Section 5.1. To get the earnings per share for the previous year, under Data on the Quotes and Data page, enter the symbols for the stock and click GO next to SEC filings. This page will list various reports the Stock Exchange Commission (SEC) has filed for the stock you entered. From the list, select the most recent quarterly report. Scroll down the quarterly report until you find Earnings Per Share. Use the value listed as the basic earnings per share for the previous year.

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