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Finance Calculators
P/E Ratio Calculator
Calculate a stock's price-to-earnings (P/E) ratio from its share price and earnings per share.
P/E ratio
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About the P/E Ratio Calculator
The price-to-earnings (P/E) ratio shows how much investors are willing to pay for each dollar of a company's earnings. It's one of the most widely used valuation metrics in equity investing.
Formula: P/E Ratio = Share Price ÷ Earnings per Share
A high P/E can indicate investors expect strong future growth (or that the stock is overvalued), while a low P/E can suggest undervaluation or weaker growth expectations — P/E is most meaningful when compared within the same industry.
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