Price to Earnings Calculator
P/E ratio: stock price relative to earnings.
Calculate price-to-earnings ratio from share price and earnings per share, the core stock valuation metric. Free and runs in your browser.
What this tool does
Enter share price and earnings per share. The tool shows P/E ratio and earnings yield.
Enter Values
Formula Used
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Calculations, display, or translation — let us know.
Disclaimer
Results are estimates for educational purposes only. They do not constitute financial advice. Consult a qualified professional before making financial decisions.
P/E ratio is the first number most investors check. A 50 share with 2.50 EPS = 20 P/E — you pay 20 for every 1 of current earnings. Below 15 is usually considered value territory; above 25 often reflects growth expectations. Earnings yield is the inverse — 20 P/E = 5% earnings yield — useful for comparing against bond yields.
Quick example
With share price of 50 and earnings per share of 2.5, the result is 20.00x. Change any figure and watch the output shift — it's often more useful to see the pattern than to memorise the formula.
Which inputs matter most
You enter Share Price and Earnings per Share (EPS). Frequency and unit price pull the total in different directions. The biggest surprise for most people is how small recurring amounts compound into large annual figures — that's where this calculation earns its keep.
What's happening under the hood
Price divided by EPS. Earnings yield = 1/PE × 100. The formula is listed in full below. If the number looks off, you can retrace the calculation by hand — that's the point of showing the working.
Using this well
Treat the output as one point on a wider map. Run it three times — a pessimistic case, a central case, and a stretch case — and plan against the pessimistic one. That habit alone separates people who stick with an investment plan from those who bail at the first wobble.
What this doesn't capture
Steady-rate math ignores real-world volatility. Actual returns are lumpy; sequence-of-returns risk matters most in drawdown; fees and taxes drag on compound growth; and behaviour changes in drawdowns can reduce outcomes below the projection. Treat the number as one scenario, not a forecast.
P/E ratio produces a multiple based on the inputs provided.
Inputs
This example uses typical values for illustration. Adjust the inputs above to match a specific situation and see how the result changes.
Sources & Methodology
Methodology
Price divided by EPS. Earnings yield = 1/PE × 100.
References
Frequently Asked Questions
Trailing vs forward P/E?
What is a good P/E?
Negative P/E?
Shiller P/E?
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