Price to Earning Ratio Calculator: Evaluate Stock Value Instantly
Use this P/E Ratio Calculator to divide any share price by its earnings per share and see if a stock trades above or below the S&P 500’s 2022 average P/E of 24.6 (Siblis Research, 2023).
Price to Earning Ratio Calculator
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How to use the tool
Enter Share Price — type the current market price, e.g., 88.90 or 150.25.
Enter Earnings Per Share (EPS) — add positive EPS, e.g., 5.10 or 2.75.
Click “Calculate” — the script checks both values are positive numbers.
Read the P/E Ratio — result appears instantly, rounded to two decimals for clarity.
P/E below 15 is generally viewed as “value” territory (Damodaran, 2023).
S&P 500 averaged a P/E of 24.6 in 2022 (Siblis Research, 2023).
P/E is undefined when EPS is negative (Investopedia, https://www.investopedia.com/terms/p/price-earningsratio.asp).
Tool accepts share prices up to $1,000,000 and EPS up to $10,000.
What is a P/E ratio?
The P/E ratio shows how many dollars you pay for each dollar a company earns, linking market sentiment to actual profit (Investopedia, link).
How does the calculator work?
JavaScript captures your inputs, validates positivity, divides price by EPS, then displays the ratio in under 0.5 seconds using basic arithmetic—no data leaves your browser.
Why must EPS be positive?
P/E loses meaning if earnings are negative because the denominator turns the metric negative or infinite; analysts switch to price-to-sales in such cases (Morningstar, 2022).
Is rounding acceptable for analysis?
Two-decimal rounding suffices for screening; in valuation models use full precision to avoid compounding error (Aswath Damodaran, NYU lecture notes, 2023).
How do I compare two stocks?
Calculate each P/E, then favor the lower figure when earnings quality and growth prospects are similar; always confirm with sector averages (Standard & Poor’s, 2023).
What counts as a “high” P/E?
Anything above the industry’s 75th percentile suggests optimism; tech averaged 32.1 while utilities averaged 18.4 in 2022 (FactSet, 2023).
Expert tip
“A low P/E without growth is a value trap, not a bargain” — CFA Institute Equity Research Guide (2021).
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