This study seeks to ascertain the short run and long run relationship between financial ratios and price to earnings ratio in GCC countries. The research uses the ARDL panel data technique for the quarterly data period collected from 2013: Q2 to December 2022: Q4. Such results suggest that long run model coefficients of the proxy variable of sales per share and book value per share also significantly affect the variable under consideration while earning per share affects the variable most strongly as is evident by the statistically significant estimated coefficients. Dividends per share and cash flow per share whereby they influence the share price to a minimal extent. Moreover, the short-term model establishes that the ECM coefficient is significant, which certifies the true existence of a long-run connection regarding data in the model. On the same note, the coefficient of the dependent variable, Sales per share, book value per share, and Earnings per share were insignificant. Paid dividends per share have a positive effect which is nonsignificant. Therefore, for policymakers, understanding that EPS, SPS, and BVPS play a crucial role in the long-term model should be the guideline to the financial stability policies. This made investors consider looking at the companies that have high EPS. Therefore, in future studies more elaborate work can be carried out on factors, which led to insignificant coefficients in the short-term model such as SPS, BVPS, and EPS that may help to understand better the market.