Earnings Per Share Stock price Price-Earnings Ratio 200 400 600 $1,000 $2,000 $0.00 $2.00 $6.00 $4.00 $0 Y1Q1 - Y1Q4 528.0 Y1 - Q1 Price-Earnings Ratio Y1Q2-Y2Q1 238.4 Y1 - Q2 Y1 - Q3 Y1Q3-Y2Q2 174.5 187.7 Y1 - Q4 Earnings Per Share (EPS) vs. Stock Price Y1Q4-Y2Q3 Y2 - Q1 Y2Q1-Y2Q4 168.1 Y2 - Q2 198.8 quarter of year 2 by the sum of the earnings per share from the four most recent quarters. Y2 - Q3 Y2Q2-Y301 of that year's quarterly earnings per share. Each subsequent bar in the chart rolls forward one quarter at a time. So, for example, the second bar divides the stock price at the end of the first The first bar in this chart is computed by dividing the stock price at the end of year 1 by the sum Y2 - Q4 Y2Q3-Y302 316.3 314.2 Year/Quarter Y3 - Q1 Year/Quarter Y2Q4-Y3Q3 Y3 - Q2 Y3Q1-Y304 198.9 Y3 - Q3 Y3Q2-Y401 177.6 Y3 - Q4 Y4 - Q1 Y3Q3-Y402 131.3 Y4- Q2 Y3Q4-Y403 109.3 Y4 - Q3 Y401-Y404 72.7 Y4 - Q4 Y4Q2-Y501 72.6 Y5 - Q1