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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
$$EPS$$: Earnings per share
P/E Ratio (EPS)
P/E Ratio (Net Income)
P/E Ratio (Forward Split)
P/E Ratio (Reverse Split)

## P/E Ratio (EPS)

Use this calculator to find the P/E ratio of a public company using EPS.
Current share price
$$Price$$

Earnings per share
$$EPS$$

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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