Price relative to earnings. The P/E Ratio Calculator takes share price, earnings per share (trailing 12 months) and returns price to earnings ratio plus earnings yield. Results update as you type, and the formula is shown under the result so you can repeat it in your own spreadsheet.
Investment maths is about comparing money at different points in time on a fair basis. Compound rates, discounting and annualised returns let you compare options of different sizes and durations. Use the worked example below to check the maths against your own figures.
How the P/E Ratio Calculator works
How many years of current earnings the market is paying for. High P/E signals expected growth (or overpricing); the earnings yield is its inverse, comparable with bond yields.
Worked example
With the example values (share price of $150, earnings per share (trailing 12 months) of $7.50), the price to earnings ratio is 20.00x; earnings yield 5%. Change any figure above and the result updates immediately; use Copy results to paste the summary into a note or email.
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Frequently Asked Questions
How is price to earnings ratio calculated?
P/E = share price ÷ earnings per share.
Which figures do I need?
Share price, earnings per share (trailing 12 months). Take them from the same period and the same set of accounts or reports so the ratio is consistent, and check the example values as a guide to the units expected.
Does the calculator account for taxes and fees?
Only where there is an input for them. For a true net return, add fees and taxes to your inputs or use the stock and crypto profit calculators, which include them.
