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Price To Earnings Ratio Calculator

Work out price to earnings ratio instantly with clear inputs, formula shown and shareable results.

About Price To Earnings Ratio Calculator

The price-earnings ratio is how many years of current earnings the market is paying for. Its reciprocal, the earnings yield, is directly comparable with bond yields and is often the more useful way to look at the same number.

Formula

P/E and earnings yield

P/E = price / EPS; earnings yield = EPS / price

Worked example

With the default values below, Price To Earnings Ratio Calculator returns Price To Earnings Ratio of 23.387. Change any input above and every figure here is recalculated in your browser.

Inputs used

Share Priceminimum 0
1,450
Earnings Per Shareminimum 0
62

Results

Price To Earnings Ratio
23.387
Earnings Yield
4.276%
Years Of Current Earnings To Repay The Price
23.4 years
Earnings On Every 100 Invested
$4.28

Step by step

  1. 1Values used
  2. 2P/E and earnings yield
  3. 3Price To Earnings Ratio= 23.387
  4. 4Earnings Yield= 4.276
  5. 5Years Of Current Earnings To Repay The Price= 23.4 years
  6. 6Earnings On Every 100 Invested= 4.28

Assumptions and limits

  • The result is derived only from the 2 inputs listed above. Anything not among them is not part of the calculation.
  • In particular, this calculator does not take inflation, tax, fees or charges or compounding frequency into account.
  • Figures are rounded for display to 3 decimal places, so totals built from several rounded parts can differ slightly from the unrounded arithmetic.
  • Figures are estimates for planning only. Market returns are not guaranteed, and rates, limits and tax rules change. This is not financial or tax advice — speak to a qualified adviser before acting.
  • This is an estimate for general information and not professional financial, tax or legal advice. See the full disclaimer for the limits that apply to this kind of calculator.

How these calculators are built and tested is described on the Methodology page. If a figure looks wrong, please report it.

Figures are estimates for planning only. Market returns are not guaranteed, and rates, limits and tax rules change. This is not financial or tax advice — speak to a qualified adviser before acting.

Frequently Asked Questions

Is a low P/E always cheap?

No. It can signal falling earnings or high risk. Compare within an industry and check the quality and durability of earnings.

Why does the earnings yield help?

It puts equities on the same footing as bonds, which is how many allocators judge relative value.

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