Calculator
P/E ratio calculator
Price divided by earnings per share, and its inverse, the earnings yield. Type your own numbers; nothing is sent anywhere.
The formula
P/E = price ÷ EPS; earnings yield = EPS ÷ price
A worked example
A price of $100 and EPS of $5.00 give a P/E of 20.0 and an earnings yield of 5.0%.
How to read it
The price-to-earnings ratio says how many dollars the market pays for one dollar of a year's earnings. EPS can be trailing (the last four quarters or the last fiscal year) or an analyst's forecast; this calculator uses whatever you enter. A P/E is not meaningful when EPS is zero or negative.
Educational, not investment advice. The result is arithmetic on the inputs you typed.
Using real company figures
Company pages show the EPS, book value per share and free cash flow per share from each company's latest annual report to the SEC, which you can copy into this calculator. Browse 487 companies or start the worksheet with a company.
Questions
What EPS should I use?
Use diluted EPS from the income statement. Company pages on this site show the diluted EPS from the latest annual report.
What is the earnings yield?
The reverse of P/E: earnings per share as a percentage of the price.
Other calculators
- Graham numberThe square root of 22.5 times earnings per share times book value per share.
- Discounted cash flowPresent value of future free cash flow per share, using growth and discount rates you choose.
- Book value per shareShareholders' equity divided by shares, and the price-to-book ratio if you add a price.
- PEG ratioP/E divided by an expected annual earnings growth rate you enter.
- Dividend discount modelValue of a dividend that grows at a steady rate, discounted at the return you require.
- Free cash flow yieldFree cash flow per share as a percentage of a price you enter.
- Return on equityNet income divided by shareholders' equity.