How this calculator works
Compare a share price with annual earnings attributable to each common share. Choose trailing or forecast EPS consistently across companies. Solve for the multiple, price or EPS. This tool requires positive earnings; a loss-making company has no meaningful positive P/E on this basis.
Formula
P/E = price per share / EPS. Price = P/E × EPS. EPS = price / P/E. Both money amounts use the same currency and share basis.
Worked example
$60 per share and $3 annual EPS give a P/E of 20. A $45 share with $5 EPS trades at 9 times earnings.
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Frequently asked questions
Does a low P/E prove a stock is cheap?
No. Weak growth, unusual profits or financial risk can all produce a low multiple.
Can I enter negative EPS?
This positive-earnings comparison rejects zero or negative EPS. Report a loss separately rather than treating a negative multiple as cheap.
Which EPS should I use?
Use trailing twelve-month or forward EPS and state which one. Diluted EPS includes potentially dilutive securities.