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Price to Earnings (P/E) Ratio Calculator

Enter the current share price and earnings per share (EPS) to calculate the P/E ratio. We’ll also show the implied earnings yield.

Inputs

Results

P/E Ratio: N/A
Earnings Yield: 0.00%

What is P/E (Price to Earnings Ratio)?

P/E is calculated as a company’s share price divided by its earnings per share. Price to earnings ratio is one of the most widely used valuations metrics. It is used to compare the relative value of a stock to its earnings.

  • Higher P/E: More growth expected OR Stock is richly valued
  • Lower P/E: Less growth expected OR Stock is cheap
  • Industry/Relative comparison is key: P/E vs. sector peers, historical range, etc.

Formula

Price-to-Earnings (P/E) Ratio = Price per Share ÷ Earnings per Share (EPS)

Earnings Yield (%) = EPS ÷ Price x 100 = 100 ÷ P/E

Example: If a stock trades at $100 and EPS is $5, then P/E = 100 ÷ 5 = 20. Earnings Yield = 5%.

Tips

  • Use forward EPS for forward P/E, if available
  • Growth, margins, and balance sheet should all be considered along with valuation
  • Extremely high or low P/E values could be due to cyclical earnings or one-time effects

Related: Magnificent 7 P/E comparison

To see trailing and forward P/E for Apple, Microsoft, Alphabet, Amazon, Nvidia, Meta and Tesla side by side, compare Magnificent 7 P/E and PEG ratios.