Price-to-Earnings Ratio Calculator
Divide the share price by earnings per share to find the P/E ratio, how much investors pay for each dollar of a company's earnings.
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Enter the share price and EPS to see the P/E ratio.
Worked example
With these example inputs:
- Share price$50
- Earnings per share$2
P/E ratio: 20
- The other way round0.05
- If the first figure were 10% higher22
Frequently asked questions
What does the P/E ratio tell me?
It shows how many dollars investors pay for each dollar of annual earnings. A P/E of 20 means the price is 20 times earnings per share.
Is a high P/E good or bad?
Neither on its own. A high P/E can signal strong growth expectations or an expensive stock, so compare it with peers and the company's own history.