P/E Ratio Calculator

Calculate the price-to-earnings (P/E) ratio and earnings yield of a stock from its share price and earnings per share.

P/E ratio
25
Earnings yield
4.00%
Price paid per 1.00 of annual earnings
25.00

Formula

P/E = Share price ÷ Earnings per share. Earnings yield = EPS ÷ Share price × 100.

About this calculator

The P/E ratio tells you how much investors pay for each unit of a company's annual profit. Compare it with the company's own history and with firms in the same industry.

Amounts are shown without a currency symbol, so the calculator works for any currency: enter all values in the same one.

Frequently asked questions

What is a good P/E ratio?

There is no single number. Fast-growing companies trade on high P/E ratios and mature ones on lower ratios. Comparison within a sector is more useful than an absolute level.

Trailing or forward EPS?

Trailing P/E uses the last 12 months of reported earnings. Forward P/E uses analysts' forecasts, which may prove wrong. State which one you are using when comparing.

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