How price/ earning ratio is calculated?

Market price of share/ earning per share

P/E Ratio = Market Price of a share/earnings per share
The price-to-earnings ratio (P/E ratio) is a financial metric used to assess the relative valuation of a company's stock. It compares the current market price of a company's share to its earnings per share (EPS). The P/E ratio is one of the most commonly used valuation ratios by investors and analysts to determine if a stock is overvalued or undervalued.