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 EPS is undefined; negative EPS is N/M 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. Zero EPS is undefined; negative EPS is N/M. 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%. Zero EPS makes P/E undefined. Negative EPS is not meaningful for this comparison (N/M).
- 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.
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