P/E Ratio Calculator
Price-to-earnings, PEG and fair value.
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This P/E ratio calculator works out a stock’s price-to-earnings ratio from its share price and earnings per share (EPS). It also shows the earnings yield, the PEG ratio using expected growth, the forward P/E from next year’s estimated EPS, and a fair-value price if the stock traded at an industry or peer P/E, in any of eight currencies.
What is a P/E Ratio Calculator?
The price-to-earnings (P/E) ratio is a stock’s price divided by its earnings per share. It tells you how much investors are paying for each unit of a company’s yearly profit. A P/E of 25 means the market values the company at 25 times its earnings.
A high P/E can mean investors expect strong growth, or that the stock is expensive; a low P/E can mean a bargain, or trouble. The PEG ratio adjusts P/E for expected growth, and the earnings yield turns P/E into a percentage you can compare with bond yields. This P/E ratio calculator shows all of them.
How does the P/E Ratio Calculator work?
P/E is the share price divided by trailing twelve-month EPS. Forward P/E uses next year’s estimated EPS. Earnings yield is the inverse of P/E. PEG divides P/E by the expected yearly earnings growth rate in percent. The fair-value price multiplies EPS by the industry or peer P/E you enter.
How to use the P/E Ratio Calculator step by step
- Choose your currency.
- Enter the share price.
- Enter trailing EPS from the latest results.
- Optionally add next year’s EPS and growth.
- Optionally add a peer P/E.
- Compare P/E, PEG and fair value.
P/E Ratio Calculator example with real numbers
A stock trades at $150. It earned $6.00 a share over the last 12 months, analysts expect $6.80 next year, earnings are expected to grow 12% a year, and similar companies trade at 20 times earnings.
| Example input | Value |
|---|---|
| Currency | US dollar ($) |
| Share price | 150 |
| Earnings per share (last 12 months) | 6 |
| Next year's estimated EPS (optional) | 6.8 |
| Expected yearly earnings growth (optional) | 12% |
| Industry or peer P/E (optional) | 20 |
| Example output | Value |
|---|---|
| P/E ratio (trailing) | 25.00 |
| Earnings yield | 4.00% |
| Forward P/E | 22.06 |
| PEG ratio | 2.08 (above 2) |
| Price at peer P/E of 20 | $120.00 |
| Difference from current price | -20.0% |
The P/E ratio calculator shows a P/E of 25.00, a PEG of 2.08 (above 2) and a forward P/E of 22.06. At the peer P/E of 20, the price would be $120.00.
Key features of this P/E Ratio Calculator
- Trailing and forward P/E
- Earnings yield
- PEG ratio
- Fair value at peer P/E
- 8 currencies
Who should use the P/E Ratio Calculator?
Who is this P/E Ratio Calculator for?
- Stock investors
- Finance students
- Equity research beginners
- Investment club members
Practical use cases
- Comparing stocks in one sector
- Checking if a stock looks expensive
- Converting P/E to a yield
- Estimating a target price
Key benefits
- Complete: four valuation views.
- Fast: instant results.
- Context: PEG adds growth.
- Private: runs in your browser.
Tips for better results
- Compare P/E within the same industry.
- Check whether EPS includes one-off gains.
- Use several years of earnings for cyclical companies.
- Look at debt too: P/E ignores the balance sheet.
Common mistakes to avoid
- Comparing P/E across very different industries.
- Using P/E for loss-making companies.
- Trusting forward estimates blindly.
- Ignoring diluted EPS.
Limitations of this P/E Ratio Calculator
- P/E alone does not value a company.
- Growth estimates are uncertain.
- Accounting differences affect EPS.
P/E Ratio Calculator vs other ways to calculate
| Measure | Formula | Best for |
|---|---|---|
| P/E | Price ÷ EPS | Profitable companies |
| PEG | P/E ÷ growth | Growth companies |
| Earnings yield | EPS ÷ price | Comparing with bonds |
| EV/EBITDA | Enterprise value ÷ EBITDA | Companies with debt |
To work out EPS from a company’s results, use the EPS calculator. For a dividend-based valuation, try the dividend discount model calculator.
Privacy and data handling
This P/E Ratio Calculator runs entirely in your browser. The numbers you type are not sent to Qorico or stored on any server, and nothing is saved after you close the page. The Copy and Download buttons create the result on your own device. If the page has analytics turned on, it may count that a calculation happened, but it does not record the values you entered.
P/E Ratio Calculator FAQs
How do I calculate the P/E ratio?
Divide the share price by earnings per share. A $150 stock with $6 EPS has a P/E of 25.
What is a good P/E ratio?
There is no single answer; compare with the company’s history and with peers in the same industry.
What is the PEG ratio?
P/E divided by the expected earnings growth rate. Below 1 is often seen as attractive.
Trailing or forward P/E?
Trailing uses actual past earnings; forward uses estimates. Both are useful.
What does a negative P/E mean?
The company lost money, so P/E is not meaningful.
What is earnings yield?
EPS divided by price, the inverse of P/E, shown as a percentage.
Related tools
Sources and references
We checked the method and the current figures used in this P/E Ratio Calculator against these official and primary sources:
Written and reviewed by the Qorico Team
