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PE Ratio Calculator
Calculate trailing P/E, forward P/E, PEG ratio, earnings yield, and required EPS in your browser. Free, no signup, no live quotes.
PE ratio calculator
Enter the current share price and earnings per share (EPS) to get the trailing P/E ratio, earnings yield, and an interpretation band.
Inputs
Current market price per share.
Net income per share for the trailing twelve months (TTM). Use the diluted EPS from the company filing for a like-for-like comparison.
Formula: P/E = share price divided by EPS. Earnings yield is the inverse: EPS divided by share price.
P/E ratio
Trailing P/E ratio
18.00
$180.00 share price divided by $10.00 EPS.
- Earnings yield
- 5.556%
EPS as a percent of share price (1 divided by P/E). Comparable to a bond yield.
- Assessment
- Average (broad-market band)
Roughly the long-run average band for large-cap indexes. Earnings growth in the mid single digits usually supports this multiple.
P/E at alternative share prices
P/E moves directly with price when EPS is unchanged. A lower price gives a lower P/E and a higher earnings yield.
| Scenario | Share price | P/E ratio | Earnings yield |
|---|---|---|---|
| -25% | $135.00 | 13.50 | 7.407% |
| -10% | $162.00 | 16.20 | 6.173% |
| Current | $180.00 | 18.00 | 5.556% |
| +10% | $198.00 | 19.80 | 5.051% |
| +25% | $225.00 | 22.50 | 4.444% |
| +50% | $270.00 | 27.00 | 3.704% |
Trailing vs forward P/E
Trailing P/E uses the last twelve months of reported earnings. Forward P/E uses an estimate of next-year earnings (analyst consensus, company guidance, or your own model). A higher trailing than forward P/E means the market expects earnings to grow; a lower trailing than forward means earnings are expected to fall.
What P/E does not tell you
P/E is a quick valuation snapshot, not a full picture. It ignores balance-sheet leverage, capital intensity, dividends, share buybacks, share dilution, and quality of earnings. Compare a company against its own history and against peers in the same sector before drawing a conclusion.
PEG interpretation
The PEG ratio scales the P/E by expected earnings growth. The classic Peter Lynch reading: PEG below 1 suggests the stock is cheap for its growth, PEG near 1 is fair, and PEG above 2 is expensive. PEG is most useful for growth stocks; for slow-growing mature businesses it is brittle because small growth-rate changes move the ratio sharply.
Earnings yield
Earnings yield is the inverse of the P/E ratio, expressed as a percent. A P/E of 20 is a 5% earnings yield. Earnings yield is convenient because it sits on the same scale as bond yields and savings rates, so you can compare what you are paying for a unit of earnings against what you can get risk-free.
How to use
- Pick a mode: P/E ratio, Forward P/E, PEG ratio, or Solve for EPS.
- Enter the share price and earnings per share (EPS) using the diluted EPS from the company filing for a like-for-like comparison.
- For Forward P/E and PEG ratio, also enter the expected EPS growth rate as a percent (annualized).
- Read the headline P/E, earnings yield, and the interpretation band that explains where the multiple sits relative to the broad market.
- For the P/E mode, review the price-sensitivity table to see how P/E moves at -25%, -10%, +10%, +25%, and +50% of the current price.
- Tap a preset to load a worked example, or use Copy summary to paste the full breakdown into notes.
About this tool
PE Ratio Calculator answers the price-to-earnings questions a retail investor types into search after they hear a stock is "trading at 20 times earnings". Four self-contained modes cover the most common shapes of the question. The P/E ratio mode takes the current share price and trailing twelve-month earnings per share (EPS) and returns the trailing P/E, the earnings yield (the inverse of P/E, expressed as a percent and directly comparable to a bond yield), and an interpretation band that explains where the multiple sits: very low for deep value or distressed names, low for the value range, average for the broad-market band, elevated for growth-priced stocks, high for high-growth or thematic names, and very high for speculative multiples. The forward P/E mode takes trailing EPS and an expected EPS growth rate and shows the trailing and forward P/E side by side, with the multiple compression (how many P/E turns the multiple loses when forward earnings grow into the price). The PEG ratio mode divides the P/E by the expected earnings growth rate and reads it against the classic Peter Lynch bands (PEG below 1 historically suggests cheap-for-growth, 1 to 1.5 is fair, above 2 is expensive). The solve-for-EPS mode answers the reverse question: at this share price and target P/E, what EPS does the company need to hit. A price-sensitivity table at -25%, -10%, current, +10%, +25%, and +50% shows how P/E and earnings yield move when the price moves on unchanged EPS. Worked-example presets cover a blue-chip mature stock at a market-typical multiple, an out-of-favour value name at a single-digit P/E, a high-growth stock priced for growth with a PEG check, a forward-P/E example with 15% growth, a REIT with a higher payout, and a loss-making company where trailing P/E is not meaningful. Currency selection covers USD, EUR, GBP, CAD, AUD, INR, JPY, SGD, and TRY for display formatting only; no FX rates and no quotes are fetched. The page does not give investment advice; it states the formula, shows the result, and explains the interpretation bands. Useful for retail investors comparing valuations across stocks, sectors, or against a company's own history, learners working through how P/E relates to earnings yield, and anyone trying to figure out what trailing and forward P/E actually mean. All math runs locally on your device.
Free to use. Works in your browser. No signup, no login.
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