P/E Ratio Calculator

About this calculator

This calculator divides a stock's share price by its earnings per share (EPS) to produce the P/E ratio, the most widely quoted valuation metric in stock analysis: a P/E of 20 means investors are paying $20 for every $1 of the company's annual earnings. It can use either trailing EPS (the last 12 months of actual earnings) or forward EPS (analyst-estimated future earnings), which typically give somewhat different results.

Investors comparing whether a stock looks "expensive" or "cheap" relative to its own history or to competitors in the same sector, and analysts screening for value stocks (low P/E) versus growth stocks (high P/E, reflecting expected future earnings growth) both rely on this ratio as a first-pass filter, even though it says nothing about debt or growth on its own.