Which inputs do I need?

You need: Share price · Earnings per share (EPS). The result updates live as you type.

Where do I find Share price?

Any finance site (Google/Yahoo Finance) — the current trading price per share. Set by the market; just enter the current price per share.

Is the P/E Ratio Calculator - Free, Is a Stock Cheap? free to use?

Yes, free, no registration required. The results are not investment advice or a recommendation.

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P/E Ratio Calculator - Free, Is a Stock Cheap?

Compute the P/E ratio in seconds and see instantly whether a stock looks cheap - free, with formula, example and benchmarks.

Also available in German: KGV-Rechner (Kurs-Gewinn-Verhältnis) →

Inputs

Share price

Also called: Stock price, market price

Where to find it: Any finance site (Google/Yahoo Finance) — the current trading price per share.

How to derive: Set by the market; just enter the current price per share.

Earnings per share (EPS)

Also called: EPS, net income per share

Where to find it: Bottom of the income statement, or the key-stats box on finance portals.

How to derive: Net income ÷ shares outstanding.

Result, live

P/E

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Earnings yield

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P/E only means something in industry & growth context - combine with PEG.

The price/earnings ratio (P/E) is the single most-quoted valuation number: it tells you how many years of current earnings you are paying for. This calculator divides the share price by earnings per share in seconds and shows instantly whether a stock looks cheap or expensive.

How the formula works

The P/E ratio divides the current share price by the earnings a company makes per share over a year. The calculator also flips the result into an earnings yield — how much profit each dollar of price buys you.

P/E = share price ÷ earnings per share (EPS)
Earnings yield = EPS ÷ share price × 100

Example: A stock trades at $100 and earns $6.50 per share. P/E = 100 ÷ 6.50 = 15.4, an earnings yield of about 6.5%. Roughly market-average — you pay about 15 years of current profit.

How to read the result

Below 15 — moderately valued; you pay a low price for current profit.
15 to 25 — around the market average for a healthy company.
Above 25 — high expectations are priced in; growth has to deliver.
No P/E — the company is loss-making; use price-to-sales instead.

What to watch out for

Growth matters. A P/E of 30 can be cheap for a fast grower and dear for a stagnant one — pair it with the PEG.
Earnings can be distorted. One-off charges or gains bend the number; check whether profit is normal.
Industries differ. Compare a bank to banks, not to software.

Frequently asked questions

What is a good P/E ratio?

There is no universal number. Below 15 is often called cheap and above 25 rich, but a fair P/E depends on growth, stability and the sector. Compare a stock to its own history and to direct peers.

What is the earnings yield?

It is the P/E turned upside down — earnings divided by price, shown as a percentage. A P/E of 20 equals a 5% earnings yield. That makes stocks easy to compare with bond interest.

Where do I get the earnings per share?

EPS comes from the latest income statement, divided by shares outstanding. In our Fair Value Calculator it is already on file for 35,000+ stocks — no typing required.