🧮 Price to Earnings Ratio Calculator
Enter a stock’s current share price and earnings per share (EPS) to calculate its price-to-earnings (P/E) ratio.
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What is the P/E ratio?
The price-to-earnings (P/E) ratio compares a company’s current share price to its earnings per share. It’s one of the most commonly used valuation metrics, giving a quick sense of how much investors are paying for each dollar of a company’s earnings.
How this calculator works
The formula is: P/E Ratio = Share Price ÷ Earnings Per Share (EPS). This calculator also shows the earnings yield, which is simply the inverse of the P/E ratio expressed as a percentage (1 ÷ P/E), useful for comparing stocks to bond yields.
- A higher P/E can suggest investors expect faster future growth, or that the stock is relatively expensive.
- A lower P/E can suggest an undervalued stock, or it can reflect real concerns about the company’s prospects.
- P/E ratios are most meaningful when compared within the same industry, since typical ratios vary a lot by sector.
This calculator is for general educational and planning purposes only and is not investment advice.
Last reviewed August 2026