Calculatorism

P/E Ratio Calculator

Enter the share price and EPS to compute the price-to-earnings ratio, or work back a fair price or EPS.

Input Data

Price
Eps

Results

Share price divided by EPS.
20×
EPS divided by price, the inverse of P/E.
5%
A plain-language reading of the P/E level.
合理區間

At a glance:The P/E ratio prices a stock relative to its earnings. P/E = price ÷ EPS; earnings yield = EPS ÷ price = 1 ÷ P/E. A high P/E suggests higher expected growth or optimism; a low P/E may signal caution or value. Compare within the same sector.

Formula

P/E = share price ÷ EPS.

Earnings yield = EPS ÷ share price = 1 ÷ P/E.

How to Use

  1. Enter the share price and EPS.
  2. Read the P/E and earnings yield.
  3. Compare the P/E with peers in the same sector.

FAQ

What is a reasonable P/E?

There is no absolute standard — compare within the same industry. Utilities often sit at 10-15x, technology growth stocks at 30-50x. A P/E far above the market (the Hang Seng Index is roughly 10-12x) needs strong growth to support it.

Is P/E meaningless when earnings are negative?

Yes. With negative EPS the P/E is negative and tells you nothing about cheapness; switch to price-to-sales (PS) or price-to-book (PB) instead.

Trailing EPS or forward EPS?

Using the past 12 months gives the 'historical P/E'; using the market's forecast for next year gives the 'forward P/E', which is usually lower as earnings are expected to grow.

How do I compare earnings yield with bond yields?

Earnings yield (E/P) can be compared with the risk-free rate or bond yields: if E/P is far above the bond yield, equities look relatively attractive — but equities carry volatility and uncertainty the yield does not capture.

Is a high P/E always a bubble?

Not necessarily. A high P/E may reflect high growth expectations; the question is whether earnings growth materialises. If growth slows while the P/E stays high, the downside risk is large.

How is P/E related to market capitalisation?

Market cap = P/E × total earnings. This tool gives the single-share P/E; the market-cap calculator links it with total earnings to see the whole-company valuation.

Related Tools

References

Content review: Calculatorism Science Team. Results are for reference only; please refer to the relevant authorities for the official figures.

Found a problem with the results?

If this calculator's result is wrong, or you have any question about the calculation logic, please let us know. You are viewing:P/E Ratio Calculator（/finance/pe-ratio）。