Calculate the price-to-earnings (P/E) ratio and earnings yield of a stock — the most widely used valuation metric for comparing companies.
How it works
- Input the current share price of the asset.
- Input the reported Earnings Per Share (EPS).
- The calculator runs the P/E formula to reveal valuation multiple and equivalent yield.
Frequently asked questions
What does the P/E ratio tell me?
How much investors pay per dollar of earnings. A P/E of 20 means you pay $20 for every $1 of annual earnings — higher P/E implies higher growth expectations.
What is a normal P/E?
The S&P 500 has historically averaged around 15–20. Growth stocks trade much higher; mature value stocks lower. Compare within an industry.
What is the PEG ratio?
P/E divided by the earnings growth rate. It contextualises a high P/E — a PEG near 1 suggests the valuation is reasonable given growth.