P/E Ratio Calculator

How to use the P/E Ratio Calculator

1. 1Enter the share price, the earnings per share and, optionally, the expected growth.
2. 2Pick the units or options from the menus if the P/E ratio tool offers them.
3. 3Read the P/E ratio in the large result box.
4. 4Look at the extra rows for related figures.
5. 5Press Copy result to keep the answer.

When you need the P/E ratio

Investors use the P/E to compare companies in the same sector, and to compare a company with its own history or with the market average. A high P/E suggests that investors expect strong growth; a low one may mean the shares are cheap or that trouble is expected.

The PEG ratio adjusts for growth, so a fast-growing company with a high P/E can still look reasonable. A PEG near 1 is often seen as fairly valued, though it depends on the market and on how reliable the growth forecast is.

How the P/E ratio is worked out

P/E = share price ÷ earnings per share. Earnings yield = earnings per share ÷ share price. PEG = P/E ÷ expected yearly growth in percent. A share priced at 150 with earnings per share of 6 has a P/E of 25 and an earnings yield of 4 percent. With expected growth of 12 percent a year the PEG ratio is 25 ÷ 12 = 2.08, which many investors would see as expensive.

Every answer on this page comes from that one rule, so you can check any result by hand with a calculator. The figures shown underneath, such as other units, are conversions of the same answer.

• P/E, earnings yield and PEG
• Optional growth rate
• Clear message for losses

Mistakes to avoid with P/E ratio

The P/E is undefined for a company that makes a loss, so the tool needs positive earnings. It also depends on which earnings you use: last year's, the last four quarters or next year's forecast. Compare like with like. This tool is for education, not investment advice.

On phone and computer

On a phone, type into the boxes one after another and read the P/E ratio underneath; Copy result puts it on the clipboard for a message or a note. On a computer the inputs sit on the left and the answer on the right, so you can change one figure and watch the P/E ratio move. The p/e ratio calculator works the same on both. Valuation is more than one ratio. Check income with Dividend Yield Calculator, work out your cost basis with Stock Average Calculator, and measure results with ROI Calculator and CAGR Calculator.

Features

• Same earnings basis for comparisons
• Sector matters
• Not investment advice
• Clear messages when the P/E ratio inputs make no sense
• Copy the result with one tap
• Private: nothing is uploaded

Frequently asked questions