P/E Ratio Calculator
Calculate the Price-to-Earnings ratio to assess whether a stock is cheap or expensive relative to its earnings.
Understanding P/E Ratio
The P/E ratio tells you how many dollars investors pay per $1 of earnings. A P/E of 20 means the stock costs 20× its annual earnings.
Low P/E stocks may be undervalued or in slow-growth industries. High P/E stocks carry expectations of rapid future growth — a miss can be punished severely.
Compare P/E against the stock's sector average and its own historical range, not in isolation.