Calculator
P/E ratio calculator
The price-to-earnings (P/E) ratio compares a stock's share price to its earnings per share. It's the most quoted valuation metric in equity investing.
Updated July 2026
$
$
P/E ratio
20.00
Earnings yield
5.00%
Inverse of P/E
How it works
P/E = Share Price / Earnings per Share
- Enter share price and trailing (or forward) EPS.
- The calculator returns P/E and the earnings yield (inverse of P/E).
Worked examples
- $120 share price, $6 EPS → P/E of 20, earnings yield 5%.
- A P/E of 40 with 4% earnings growth implies a very long payback period.
Frequently asked questions
What is a good P/E?
It depends on growth and sector. Slow, stable businesses usually 10–15; fast growers 25–40 or more. Compare within an industry.
Trailing or forward P/E?
Trailing uses actual last-12-months EPS. Forward uses next-12-months estimates. Trailing is factual; forward is dependent on analyst accuracy.
Related
Educational information only. Not personalised financial advice. Consult a qualified professional for decisions specific to your situation.