PE Ratio Calculator
P/E, PEG & Valuation Calculator
Enter a price, earnings per share and an expected growth rate to see three common valuation ratios, and what each one leaves out.
Limits of each ratio
| Ratio | Formula | What it misses |
|---|---|---|
| P/E | Price ÷ EPS | Useless with negative earnings; one-off gains or charges distort it |
| Earnings yield | EPS ÷ price | Earnings aren't cash; compare with care to bond yields |
| PEG | P/E ÷ growth % | Depends entirely on a growth forecast |
| Forward P/E | Price ÷ next year's estimated EPS | Estimates are often wrong |
- Compare P/E within the same industry. A software company and a utility usually trade at very different multiples.