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Price to Earnings (P/E) Ratio Calculator

Enter price per share and earnings per share (EPS) to compute the P/E ratio.

Price to Earnings (P/E) Ratio Calculator

The Price to Earnings (P/E) Ratio Calculator is a free and easy-to-use tool that helps investors, traders, and financial analysts determine the P/E ratio of a stock. By entering just two values Price per Shareand Earnings per Share (EPS), you can instantly calculate the P/E ratio, a critical financial metric used in stock market analysis and company valuation.

What is the Price to Earnings (P/E) Ratio?

The Price to Earnings (P/E) ratio is a widely used stock valuation ratio that compares a company’s share price to its earnings per share (EPS). It indicates how much investors are willing to pay for each dollar of earnings.

Formula:
P/E Ratio = Price per Share ÷ Earnings per Share (EPS)

A high P/E ratio may suggest that investors expect high growth in the future.
A low P/E ratio may indicate undervaluation or slower growth expectations.

Example Calculations Using the P/E Ratio Calculator

Example 1

Price per Share: $345
Earnings per Share (EPS): $12

P/E Ratio = 345 ÷ 12 = 28.75

✅ Result: The stock has a P/E ratio of 28.75, meaning investors are willing to pay $28.75 for every $1 of earnings.

Example 2

Price per Share: $500
Earnings per Share (EPS): $25

P/E Ratio = 500 ÷ 25 = 20

✅ Result: The stock has a P/E ratio of 20, which is considered reasonable for many industries.

Example 3

Price per Share: $150
Earnings per Share (EPS): $5

P/E Ratio = 150 ÷ 5 = 30

✅ Result: The P/E ratio is 30, suggesting that the stock may be priced at a premium relative to its earnings.

Example 4

Price per Share: $80
Earnings per Share (EPS): $10

P/E Ratio = 80 ÷ 10 = 8

✅ Result: The P/E ratio is 8, which could indicate that the stock is undervalued or that growth expectations are low.

Features of the P/E Ratio Calculator

Quick & Accurate – Calculates P/E ratio instantly
Simple Inputs – Requires only price per share & EPS
Error-Free – No manual math needed
Cross-Device – Works on desktop, mobile, and tablet
Free Access – Use anytime, anywhere

Who Should Use This Calculator?

Investors & Traders – Evaluate stock valuation
Financial Analysts – Compare companies within industries
Students & Learners – Understand stock market metrics
Portfolio Managers – Assess investment decisions
Business Owners – Estimate market-based valuations

Why the P/E Ratio Matters

The P/E ratio is one of the most important metrics in fundamental analysis. It helps answer questions like:

  • Is the stock priced fairly compared to its earnings?
  • How does this company’s valuation compare to industry peers?
  • Is the market expecting strong growth from this company?

By comparing P/E ratios across companies and industries, investors can identify opportunities and risks more effectively.

Benefits of Using Our P/E Ratio Calculator

Time-Saving – Faster than manual math
Error-Free – Eliminates mistakes in analysis
Real-Time Insights – For better investment decisions
Comparison Tool – Evaluate multiple stocks quickly
Supports Planning – Improves financial strategies

✅ The Price to Earnings (P/E) Ratio Calculator is an essential tool for anyone involved in the stock market. Whether you are a beginner learning about stocks or a professional investor analyzing companies, this calculator simplifies the process of determining the P/E ratio and interpreting valuation.

👉 Try our P/E Ratio Calculator today on Hive Calculator and make smarter, data-driven investment decisions.