Divide share price by earnings per share for the P/E ratio — the most common stock valuation multiple — plus the earnings yield.
P/E = price ÷ earnings per share — what investors pay for each dollar of annual earnings. Earnings yield is its inverse (EPS ÷ price). PEG divides P/E by growth rate to judge whether a high P/E is justified (near 1 is often seen as fair). P/E only works with positive earnings, and varies hugely by sector. Not investment advice.
The P/E ratio is the headline valuation multiple: a P/E of 20 means investors pay $20 for each $1 of annual earnings. High P/Es price in growth expectations; low ones can signal value — or trouble. The earnings yield (the inverse) lets you compare a stock to bond yields, and PEG adjusts P/E for growth.
P/E = price ÷ EPS · Earnings yield = EPS ÷ price
No — it can mean the market expects earnings to fall (a "value trap"). Read P/E alongside growth (PEG), debt, and the industry norm, not in isolation.
P/E divided by the earnings growth rate. A PEG near 1 suggests the valuation is roughly in line with growth; well below 1 can indicate an undervalued grower.
Related: return on equity calculator · dividend yield calculator · real rate of return calculator · all free calculators.
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It uses standard formulas and recalculates the moment you change a value, so the math is exact for the inputs you enter. Treat the result as a reliable planning estimate; for decisions with legal or tax consequences, confirm the figures with a qualified professional.
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