P/E ratio calculator
The price-to-earnings (P/E) ratio is the share price divided by earnings per share (EPS). It tells you how many dollars investors pay for each dollar of annual earnings. A P/E of 20 means the market values the company at 20× its yearly per-share profit. Use diluted EPS from the income statement for a conservative figure. P/E is only meaningful for profitable companies — a negative or zero EPS makes it undefined.
Calculator
Formula
P/E ratio = Share price ÷ Earnings per share (EPS)
How to use it
Enter the figures above — you can pull them straight from a company's 10-K on SEC EDGAR or from a FilingFacts company page. The result updates instantly and nothing you type leaves your browser. This is an educational tool, not investment advice.
Frequently asked questions
How do you calculate the P/E ratio?
Divide the current share price by the company's earnings per share (EPS). For example, a $150 share price and $6 diluted EPS give a P/E of 25. Use the diluted EPS reported on the income statement of the 10-K for a like-for-like figure.
What is a good P/E ratio?
There is no universal 'good' value — it depends on the sector and growth expectations. Slow-growing, mature companies often trade at single-digit to low-teens P/E ratios, while fast-growing firms can trade at 30× or more. Always compare against peers in the same industry.
Why can a P/E ratio be negative or missing?
If a company has negative EPS (a net loss) the P/E ratio is negative and generally treated as not meaningful. Some firms also report different EPS lines; this calculator uses whatever EPS you enter, so use the diluted figure for consistency.