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Price To Earnings Ratio Calculator

Last updated: Monday, May 01, 2023
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Price to Earnings Ratio or (P/E Ratio) is a popular calculation and one of the many ways to valuate a company based on its current share price. For example, if a company's P/E ratio is 200, that means for every $200 you spend buying the company stock, you expect $1 in earnings next year or simply put, you are spending $200 to make $1.

P/E ratio is also a good indicator to use to help you figure out how over/undervalued a company's current share price is and based on your own risk profile.

The formula for determining the Price To Earnings Ratio is defined as:
\(PE\) \(=\) \(\dfrac{Price}{EPS}\) \(=\) \(Price\) \(\times\) \(\dfrac{Shares\text{ }Outstanding}{Net\text{ }Income}\)
\(PE\): Price to earnings ratio
\(EPS\): Earnings per share
\(Price\): Current share price
\(EPS\): Earnings per share
P/E Ratio (EPS)
P/E Ratio (Net Income)
P/E Ratio (Forward Split)
P/E Ratio (Reverse Split)

P/E Ratio (EPS)

Use this calculator to find the P/E ratio of a public company using EPS.
Current share price
Earnings per share
Please note, that all calculators provided are for informational and educational purposes ONLY, and should NOT be taken as professional financial advice.
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