P/E Ratio Calculator
P/E Ratio
Calculate price-to-earnings ratio
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Fair Price from P/E
Estimate fair stock price from target P/E and EPS
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Forward P/E
Calculate forward P/E using estimated future earnings
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Formula
P/E Ratio = Stock Price / Earnings Per Share (EPS)
Frequently Asked Questions
What is the P/E ratio?
The Price-to-Earnings (P/E) ratio measures a stock's price relative to its earnings per share. A P/E of 20 means investors pay $20 for every $1 of earnings. It is one of the most widely used valuation metrics.
What is a good P/E ratio?
There is no universal 'good' P/E ratio. It varies by industry, growth rate, and market conditions. Growth stocks typically have higher P/E ratios (25-50+), while value stocks may have lower ones (5-15). Always compare within the same industry.
What is the difference between trailing and forward P/E?
Trailing P/E uses the last 12 months of actual earnings, while forward P/E uses estimated future earnings. Forward P/E is often preferred for growing companies but depends on the accuracy of analyst estimates.