P/E ratio calculator

This divides a share price by earnings per share and, if you add a growth rate, divides that P/E by the growth percent. Zero or negative earnings have no P/E here. A lower ratio is not a reason to buy. The P/E guide uses the same example.

P/E = price ÷ EPS. Earnings yield = EPS ÷ price. PEG = P/E ÷ earnings growth percent.

P/E

Enter a share price and a positive EPS.

How to calculate P/E and PEG

Enter price and EPS. EPS has to be greater than zero. The implied-price calculator runs the formula the other way: EPS times a multiple.
Optionally enter an earnings growth rate. Use percent, so 10 means 10% a year. Leave it blank to skip the PEG ratio.
Read P/E, earnings yield, and PEG. Earnings yield is EPS divided by price. PEG is P/E divided by the growth percent.

Frequently asked questions

How do you calculate a P/E ratio?: Divide the share price by earnings per share. A $100 price and $5 of EPS is a P/E of 20. Earnings yield is the inverse, $5 ÷ $100, or 5%. P/E is not defined when EPS is zero or negative.
How do you calculate a PEG ratio?: Divide the P/E by the earnings growth rate in percent. A P/E of 20 and 10% growth is a PEG of 2. The growth rate is an assumption you type. The ratio does not say whether that growth will happen.
Is this investment advice?: No. The calculator is for general informational and educational purposes only. A lower P/E is not a recommendation to buy, and a higher P/E is not a recommendation to sell.

Related guides

How to calculate P/E and PEG

Enter price and EPS. EPS has to be greater than zero. The implied-price calculator runs the formula the other way: EPS times a multiple.

Optionally enter an earnings growth rate. Use percent, so 10 means 10% a year. Leave it blank to skip the PEG ratio.

Read P/E, earnings yield, and PEG. Earnings yield is EPS divided by price. PEG is P/E divided by the growth percent.

Frequently asked questions

How do you calculate a P/E ratio?

Divide the share price by earnings per share. A $100 price and $5 of EPS is a P/E of 20. Earnings yield is the inverse, $5 ÷ $100, or 5%. P/E is not defined when EPS is zero or negative.

How do you calculate a PEG ratio?

Divide the P/E by the earnings growth rate in percent. A P/E of 20 and 10% growth is a PEG of 2. The growth rate is an assumption you type. The ratio does not say whether that growth will happen.

Is this investment advice?

No. The calculator is for general informational and educational purposes only. A lower P/E is not a recommendation to buy, and a higher P/E is not a recommendation to sell.

P/E

How to calculate P/E and PEG

Frequently asked questions

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P/E

How to calculate P/E and PEG

Frequently asked questions

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