5. A company has an EPS of $2.00, a book value per share of $20, and a market/book ratio of 1.2x. What is its P/E ratio? Solution P/E ratio = Market Price per share/EPS = $ 24 / $ 2.00 = 12.00 Working: EPS stands for Earning Per share. Market Price per share = Book Value per share x market/book ratio = $ 20 x 1.2 = $ 24.