P/E Ratio Calculator

Price-to-earnings ratio from share price and earnings per share.

P/E ratio
25.00
Earnings yield
4.00 %

What this measures

The Price-to-Earnings (P/E) ratio tells you how much investors are paying for each dollar of a company's earnings. A P/E of 20 means investors pay $20 for every $1 of annual earnings. Compare a stock's P/E to its sector average and to its own historical range — a high P/E signals growth expectations, a low P/E signals value or a warning.

Formula & example

P/E = Price per Share ÷ Earnings per Share. Use trailing twelve-month EPS for the trailing P/E, or forward-EPS estimates for the forward P/E. If a stock trades at $150 with EPS of $6, P/E = 25. Also computes earnings yield (1/PE) — useful for comparing to bond yields.

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