Price-Earnings Ratio Calculator

Formula

The formula to calculate the Price-Earnings Ratio is:

\[ \text{Price-Earnings Ratio} = \frac{\text{Market Price per Share}}{\text{Earnings Per Share}} \]

Where:

\(\text{Price-Earnings Ratio}\) is the valuation measure that compares the level of stock prices to the level of corporate profits.
\(\text{Market Price per Share}\) is the dollar amount that investors are willing to pay for one share of the company's stock.
\(\text{Earnings Per Share}\) is the portion of a company's profit allocated to each outstanding share of common stock.

Price-Earnings Ratio Definition

The Price-Earnings Ratio (P/E ratio) is a valuation measure that compares the level of stock prices to the level of corporate profits, providing investors with a sense of a stock’s value.

Example Calculation

Let's assume the following values:

Market Price per Share = 50
Earnings Per Share = 11

Using the formula:

\[ \text{Price-Earnings Ratio} = \frac{50}{11} \]

Evaluating:

\[ \text{Price-Earnings Ratio} = 4.54545454545455 \]

The Price-Earnings Ratio is 4.54545454545455.

Price-Earnings Ratio Conversion Table

Market Price per Share	Earnings Per Share	Price-Earnings Ratio
40	10	4.000000000000
40	11	3.636363636364
40	12	3.333333333333
40	13	3.076923076923
40	14	2.857142857143
40	15	2.666666666667
45	10	4.500000000000
45	11	4.090909090909
45	12	3.750000000000
45	13	3.461538461538
45	14	3.214285714286
45	15	3.000000000000
50	10	5.000000000000
50	11	4.545454545455
50	12	4.166666666667
50	13	3.846153846154
50	14	3.571428571429
50	15	3.333333333333
55	10	5.500000000000
55	11	5.000000000000
55	12	4.583333333333
55	13	4.230769230769
55	14	3.928571428571
55	15	3.666666666667
60	10	6.000000000000
60	11	5.454545454545
60	12	5.000000000000
60	13	4.615384615385
60	14	4.285714285714
60	15	4.000000000000