# Price to Earnings P/E Ratio Calculator

This calculator assists in computing the Price-to-Earnings (P/E) ratio, a fundamental financial metric used by investors to assess the valuation of a company’s stock. Here’s how you can utilize it:

**Enter Price per Share**: Input the current price per share of the company’s stock.**Enter Annual Earnings per Share**: Input the annual earnings per share of the company.**Calculate P/E Ratio**: Click on the “Calculate P/E Ratio” button to determine the P/E ratio.**View Result**: The calculated P/E ratio will be displayed below the button.

**Formula:** The P/E ratio is calculated using the following formula:

`P/E Ratio = Price per Share / Earnings per Share`

**Example Calculation:** For instance, if the price per share is $50 and the annual earnings per share are $5:

`P/E Ratio = 50 / 5 = 10`

This means investors are paying $10 for every dollar of earnings per share.

Feel free to input different values for price per share and earnings per share to assess the company’s valuation.

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