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# Price To Earnings Ratio Calculator

Last updated: Monday, May 01, 2023

Price to Earnings Ratio or (P/E Ratio) is a popular calculation and one of the many ways to valuate a company based on its current share price. For example, if a company's P/E ratio is 200, that means for every $200 you spend buying the company stock, you expect$1 in earnings next year or simply put, you are spending $200 to make$1.

P/E ratio is also a good indicator to use to help you figure out how over/undervalued a company's current share price is and based on your own risk profile.

The formula for determining the Price To Earnings Ratio is defined as:
$$PE$$ $$=$$ $$\dfrac{Price}{EPS}$$ $$=$$ $$Price$$ $$\times$$ $$\dfrac{Shares\text{ }Outstanding}{Net\text{ }Income}$$
$$PE$$: Price to earnings ratio
$$EPS$$: Earnings per share
$$Price$$: Current share price
$$Net\text{ }Income$$: How much money company is making after all expenses have been paid including taxes.
$$Shares\text{ }Outstanding$$: How many shares have been issued by the companies.
$$Ratio$$: How many shares will a single share be divided into, for example, enter 3, if the ratio is 3:1
P/E Ratio (EPS)
P/E Ratio (Net Income)
P/E Ratio (Forward Split)
P/E Ratio (Reverse Split)

## P/E Ratio (Forward Split)

Use this calculator to find the P/E ratio of a public company after a forward stock split
Current share price
$$Price$$

How much money company is making after all expenses have been paid including taxes.
enter a number in thousands, enter 5 for 5,000 or 50 for 50,000
$$Net\text{ }Income$$

How many shares have been issued by the companies.
enter a number in millions
$$Shares\text{ }Outstanding$$
How many shares will a single share be divided into, for example, enter 3, if the ratio is 3:1
$$Ratio$$
Please note, that all calculators provided are for informational and educational purposes ONLY, and should NOT be taken as professional financial advice.
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