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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

P/E ratio (glossary)
Definition and reference.
PEG ratio calculator
Growth-adjusted P/E.
Educational information only. Not personalised financial advice. Consult a qualified professional for decisions specific to your situation.