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P/E ratio calculator

Enter the share price and earnings per share to get the P/E ratio and earnings yield.

Inputs

Results update live as you type.

P/E ratio
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Enter values to calculate.

Earnings yield
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Price
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Formulas: P/E = price / EPS. Earnings yield = 1 / P/E x 100, the inverse, comparable with bond yields.
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Reading the P/E ratio

A P/E of 15 means you pay $15 for every $1 of yearly earnings. High P/E signals high growth expectations; low P/E can mean a bargain or a business in decline. It only makes sense comparing similar companies.

Earnings yield

Flip the ratio: 1 / P/E is the earnings yield, directly comparable to bond yields. A P/E of 20 equals a 5% earnings yield: the stock must beat that to justify itself against bonds.

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P/E Ratio Calc FAQs

How do you calculate P/E ratio?
Divide share price by earnings per share. $150 price with $10 EPS = 15.0 P/E.
What is a good P/E ratio?
The long-run market average is around 15 to 20. Growth stocks run higher, value stocks lower. Judge against the sector average, not an absolute number.
What does a negative P/E mean?
The company has negative earnings (a loss), so the ratio is meaningless for valuation. Look at price to sales or wait for profitability.
Trailing vs forward P/E?
Trailing uses past twelve months earnings (certain, backward-looking). Forward uses analyst estimates (uncertain, forward-looking). This tool works with either: just be consistent.
Is my data uploaded anywhere?
No. Every calculation happens in your browser with JavaScript. Nothing you enter leaves your device.
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