Price-to-Earnings Ratio Calculator

Your details

Trailing P/E uses the last four quarters of reported earnings. Forward P/E uses analyst consensus estimates for the next twelve months.
Current market price per share.
USD
Net income attributable to common shareholders divided by diluted shares outstanding. Use trailing or forward EPS to match the mode above.
USD
Expected annualised growth rate in earnings per share (used to calculate the PEG ratio). Leave at 0 to skip the PEG calculation.
%
A hypothetical P/E multiple used to back-calculate an implied stock price. Useful for valuation scenarios and price targets.
P/E ratioAbove historical average
20

Stock price divided by earnings per share

Earnings yield5%
PEG ratio2
Implied price (at target P/E)180USD
Upside / downside to target0%
20 x
Deep value<10Below average10-15Fair value15-25Above average25-35High premium35+

Trailing P/E ratio: 20.0x

  • A trailing P/E of 20.0x is in the historically normal band (roughly 15 to 25x for profitable large-cap companies).
  • The earnings yield is 5.00%, the inverse of the P/E ratio. Comparing this to prevailing bond yields helps assess the equity risk premium.
  • The PEG ratio is 2.00, above 2.0, suggesting the growth rate may not justify the current multiple.
  • At your target P/E of 20.0x, the implied price is $180.00, a 0.0% upside from the current $180.00.

Next stepP/E is a starting point: always compare it to the sector median, the company's own historical range, and paired metrics such as price-to-free-cash-flow and EV/EBITDA.

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