About P/E Ratio Calculator
The P/E Ratio Calculator is used to calculate the P/E ratio (price-to-earnings ratio).
P/E ratio Definition
The P/E ratio of a stock is a measure of the price paid for a share relative to the annual net income or profit earned by the company per share.
P/E ratio Calculation
The P/E ratio calculation formula is as follows:
P/E ratio = Price per share / Annual earnings per share
Stock A is trading at $100 and the earnings per share for the most recent 12-month period is $5, then stock A has a P/E ratio of 20 (100/5).
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