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:

Price per Share:
Annual Earnings per Share:

Calculate P/E Ratio

1. Enter Price per Share: Input the current price per share of the company’s stock.
2. Enter Annual Earnings per Share: Input the annual earnings per share of the company.
3. Calculate P/E Ratio: Click on the “Calculate P/E Ratio” button to determine the P/E ratio.
4. 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.