P/E ratio and earnings yield calculator
The P/E ratio shows how much you pay for each unit of the company's yearly earnings. Enter the price and annual EPS to get the ratio and the earnings yield.
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How to use it
- Enter share price and annual earnings per share (eps).
- The result appears straight away and updates as you edit.
- Copy the result, or copy a link that keeps the same values to share it.
How it is calculated
P/E = share price ÷ earnings per share. Earnings yield = EPS ÷ share price × 100.
Example
Inputs: Share price = 60, Annual earnings per share (EPS) = 4. Result: P/E ratio: 15 x; Earnings yield: 6.67%.
Limits and caveats
- The result depends on the EPS you enter: trailing 12 months or forecast.
- Comparisons are only useful between companies in the same sector.
Questions about this tool
What does a P/E of 15 mean?
The price is 15 times the yearly earnings per share. If earnings stayed flat, it would take the company 15 years to earn the share price.
Why is there no P/E for loss-making companies?
Dividing the price by a negative profit gives a negative number that cannot be compared, so market sites show it as not available.
Why look at earnings yield?
Being a percentage, it is easy to compare with bond or deposit yields. A P/E of 20 equals a 5% earnings yield.