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How to Calculate Net Income Based on Stock Price | Sapling

How to Calculate Net Income Based on Stock Price | Sapling

If you know a company’s stock price and its price-to-earnings (P/E) ratio, you can calculate its net income, or profit. A P/E ratio measures the relationship between a company’s stock price and its net income. The ratio equals a company’s stock price per share divided by its earnings per share over the past 12 months.

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