# Price to Earnings Ratio Calculator (P/E)

URL: https://speedycalculator.com/calculators/finance/pe-ratio/
Last updated: 2026-10-25

> The price to earnings ratio calculator divides a stock's price by its earnings per share to give the P/E ratio, the earnings yield, and the price implied by a target P/E.

## Inputs

- Share price
- Earnings per share (EPS)
- Target P/E

## Results

- P/E ratio
- Earnings yield
- Price at the target P/E

## Formula

```
P/E = share price ÷ earnings per share
Earnings yield = EPS ÷ price
Price at target P/E = target P/E × EPS
```

## Explanation

The P/E ratio tells you how much investors pay for each dollar of earnings. The S&P 500 has averaged around 15–20× over the long term. High P/Es usually reflect expected growth; low P/Es can mean value or trouble.

### How to use the Price to Earnings Ratio Calculator

- **Share price**
- **Earnings per share (EPS)**
- **Target P/E**

Results update as you type, and every field accepts the units shown in its menu.

### How it works

Enter the share price and earnings per share (trailing or forward), and optionally a target P/E.

### Tips

- Take figures from the same financial statements and the same fiscal year.
- Compare ratios with companies in the same industry, not across industries.
- Use several valuation measures together; no single ratio tells the whole story.
- Market prices change every second – refresh the share price before you rely on a result.

### Common mistakes to avoid

- Mixing per-share figures with company totals.
- Using trailing earnings for one company and forward earnings for another.
- Forgetting dilution from options and convertible securities.

### Inputs explained

FieldWhat to enterShare priceAmount in your currencyEarnings per share (EPS)Amount in your currencyTarget P/EA number

### What each result means

- **Earnings yield** = [Earnings per share (EPS)]÷[Share price]×100
- **Price at the target P/E** = [Target P÷E]×[Earnings per share (EPS)]

### Example values

How the main result changes when **Share price** changes and everything else stays at the example values above:

Share priceP/E ratio6010901512020150251803024040

## Worked example

Inputs — Share price: $120; Earnings per share (EPS): $6; Target P/E: 18.

Results — **P/E ratio = 20**; Earnings yield = 5 %; Price at the target P/E = $108.00.

## FAQ

**What is a good P/E ratio?**
It depends on growth and industry; around 15–25 is typical for the S&P 500.

**What is the difference between trailing and forward P/E?**
Trailing uses the last 12 months of EPS; forward uses next year's estimate.

**Why is P/E not meaningful for loss-makers?**
Negative earnings give a negative or undefined P/E.

**What formula does the Price to Earnings Ratio Calculator use?**
P/E = share price ÷ earnings per share.


## Sources

- [U.S. SEC – Investor.gov compound interest and investing basics](https://www.investor.gov/)