Price-to-Earnings (P/E) Ratio Calculator

About this calculator

The P/E ratio is share price ÷ earnings per share, and its inverse — earnings yield = EPS ÷ price — expresses the same relationship as a percentage return, directly comparable to a bond yield.

Investors have used P/E as the default first-pass valuation check for over a century: a high P/E signals the market expects strong future growth (or the stock may be overpriced), while a low P/E can mean a bargain — or a company the market has real doubts about. It's the number quoted alongside almost every stock ticker precisely because it converts an absolute share price into something comparable across companies of totally different sizes.