Price-to-Earnings (P/E) Calculator

Calculate the P/E ratio and earnings yield to evaluate whether a stock is overvalued or undervalued.

P/E Ratio Calculator

Enter share price and earnings per share

Share Price ($)

Earnings Per Share — EPS ($)

P/E Ratio

Earnings Yield

Share Price / EPS

Formula

P/E = Price ÷ EPS
Earnings Yield = (EPS ÷ Price) × 100

The P/E ratio tells you how much investors pay for every dollar of earnings. Earnings yield is the inverse — useful when comparing to bond yields.

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Pro Tips

A P/E below 15 may indicate the stock is undervalued relative to peers.

A P/E above 25 may signal the stock is overvalued or has high growth expectations.

Always compare P/E ratios within the same industry for meaningful context.