do you mean stock valuation? if so use "gordons method". here is the link to a wealth of info. Remember you asked for it. <a href="http://www.accountingformanagement.com/accounting_ratios.htm" rel="nofollow" target="_blank">http://www.accountingformanagement.com/accounting_ratios.htm</a> [Earnings per share (EPS) Ratio = (Net profit after tax − Preference dividend) / No. of equity shares (common shares)] for example: Equity share capital ($1): $1,000,000; 9% Preference share capital: $500,000; Taxation rate: 50% of net profit; Net profit before tax: $400,000. Calculate earnings per share ratio. Calculation: EPS = 1,55,000 / 10,000 = $15.50 per share. simple enough if you remember your math.