Free P/E Ratio Calculator
Quickly Analyze Stock Valuation with Price to Earnings Ratio
The P/E Ratio Calculator helps investors measure a stock’s valuation by comparing its current price to earnings per share (EPS). By entering the stock price and EPS, this tool calculates the Price-to-Earnings ratio, indicating whether a stock is overvalued, fairly valued, or undervalued. Understanding the P/E ratio is vital for making informed investment decisions, comparing stocks within the same sector, and identifying potential opportunities for growth or value investing. Suitable for beginners and experienced investors alike, this calculator simplifies stock analysis, saves time, and improves investment strategies. Make smarter choices and evaluate stocks effectively with this easy to use P/E Ratio Calculator.
P/E Ratio Calculator
Calculate the Price to Earnings ratio of a stock.
Calculation Results
P/E Ratio
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Calculation Breakdown
Price to Book Ratio (P/B) Calculator Guide
The Formula We Use
Book Value of Equity = Total Shareholders’ Equity − Preferred EquityBook Value per Share (BVPS) = Book Value of Equity ÷ Shares OutstandingP/B Ratio = Price per Share ÷ BVPSMarket-to-Book (%) = (P/B × 100)optional display
Example Calculation (USD)
- Book Value of Equity = 2,400,000 − 400,000 = $2,000,000
- BVPS = 2,000,000 ÷ 1,000,000 = $2.00
- P/B Ratio = 40.00 ÷ 2.00 = 20.0×
- Market-to-Book = 20.0 × 100 = 2,000%
How to Use This Calculator
- Enter Price per Share, Total Shareholders’ Equity, Preferred Equity (if any), and Shares Outstanding.
- We compute BVPS and the P/B Ratio.
- Compare P/B across peers or vs. the company’s own history.
- Use along with ROE, growth, and sector norms to judge valuation.
Tips to Interpret Price to Book
- Sector context: Asset heavy sectors (banks, insurers) often use P/B; asset light tech may look inflated.
- Quality check: Pair with ROE high ROE + reasonable P/B may signal quality.
- Adjustments: Consider intangibles, write downs, and buybacks that change book value.
- P/B < 1.0× can imply potential undervaluation—or problems with assets/earnings.
- Timeliness: Use the latest balance sheet; stale BV skews ratios.
Educational content; not financial advice. Always cross check with other valuation metrics.
Benefits of Using P/E Ratio Calculator
Quick Valuation Insight
Determine if a stock is overvalued or undervalued quickly.
Instant Calculation
Input earnings and price to get immediate P/E ratio results.
Beginner-Friendly
Simple interface for both novice and experienced investors.
Accurate Metrics
Reliable calculation based on latest stock price and earnings data.
Global Stocks Support
Works for stocks from multiple countries and exchanges.
Data Privacy
All calculations happen locally; no data is stored.
Frequently Asked Questions
What is P/E ratio?
The Price-to-Earnings ratio measures a stock's price relative to its earnings per share.
Why is it important?
It helps investors assess whether a stock is overvalued or undervalued.
Can this calculator handle multiple currencies?
Yes, simply input the stock price in your preferred currency.
Is it beginner friendly?
Yes, the calculator has a simple input and provides clear results.
Does it account for historical earnings?
You can input any earnings value to calculate the P/E ratio for historical data.
Is my data secure?
Yes, all calculations are performed locally in your browser.