P/E Ratio Calculator

Calculate Price-to-Earnings ratio with valuation context

Uses & Examples

When to Use This Tool

Quickly assessing whether a stock is cheap or expensive relative to earnings
Comparing P/E ratios across companies in the same sector
Screening for value stocks (low P/E) vs growth stocks (high P/E)
Understanding how much you're paying per dollar of company profit

Worked Example

Worked Example

Stock price: $150 | EPS: $7.50

P/E = $150 / $7.50 = 20x

Fair value — near market average. You're paying $20 for every $1 of earnings.