P/E Ratio Calculator (Price to Earnings, Earnings Yield, PEG)

What this tool does

The P/E says how many years of current profits the price represents: at a P/E of 20 you pay 20 times what the company earned last year. Its inverse, the earnings yield, is easier to compare with interest rates — a P/E of 20 is a 5 % earnings yield. The PEG divides the P/E by the expected growth rate as a rough way of judging whether a high multiple is backed by growth. All three rest on accounting earnings and on forecasts, and a negative EPS makes the ratio meaningless, so it is shown as zero.

Formula

P/E = price ÷ EPS · earnings yield = EPS ÷ price · PEG = P/E ÷ growth (%)

Variables

Worked example

Limitations

• This is an informational calculator, not personalised financial advice. Rates, fees, taxes and contract conditions vary between institutions and countries.
• The tool works with whatever currency you use for the inputs; it does not convert between currencies.