{
  "id": "pe-ratio",
  "version": "98f71f9bfebd",
  "status": "published",
  "name": "P/E Ratio Calculator",
  "question": "What is the P/E ratio?",
  "summary": "Computes the price-to-earnings (P/E) ratio, share price ÷ earnings per share, and the earnings yield.",
  "category": "finance",
  "subcategory": "investing",
  "url": "https://www.acalculator.org/finance/pe-ratio-calculator",
  "markdown": "https://www.acalculator.org/finance/pe-ratio-calculator.md",
  "kind": "function",
  "method": "P/E ratio = share price ÷ earnings per share. Earnings yield = earnings per share ÷ share price × 100.",
  "assumptions": [
    "You type the share price and EPS; nothing is fetched.",
    "EPS must be more than $0; a loss gives no P/E.",
    "Arithmetic is exact on the typed decimals; both results show to 2 decimals, halves up."
  ],
  "inputs": {
    "$schema": "https://json-schema.org/draft/2020-12/schema",
    "type": "object",
    "properties": {
      "price": {
        "title": "Share price",
        "description": "The market price of one share. Type the price you see; the page fetches no quotes.",
        "type": "number",
        "x-unit": "USD",
        "exclusiveMinimum": 0,
        "maximum": 1000000000
      },
      "eps": {
        "title": "Earnings per share (EPS)",
        "description": "Earnings per share for the last 12 months (trailing) or the next 12 months (forward).",
        "type": "number",
        "x-unit": "USD",
        "minimum": -1000000000,
        "maximum": 1000000000
      }
    }
  },
  "outputs": {
    "pe": {
      "label": "P/E ratio",
      "description": "Share price ÷ earnings per share.",
      "format": "number"
    },
    "yield": {
      "label": "Earnings yield",
      "description": "Earnings per share ÷ share price × 100, the P/E ratio turned upside down.",
      "format": "percent"
    }
  },
  "defaultAnswer": {
    "inputs": {
      "price": 69.41,
      "eps": 3.75
    },
    "outputs": {
      "pe": 18.509333333333334,
      "yield": 5.402679729145656
    },
    "text": "At $69.41 a share and EPS of $3.75, the P/E ratio is 18.51 and the earnings yield 5.4%."
  },
  "examples": [
    {
      "given": {
        "price": 69.41,
        "eps": 3.75
      },
      "expect": {
        "pe": 18.509333333333334,
        "yield": 5.402679729145656
      },
      "source": "OpenStax, Principles of Finance, 6.5 Market Value Ratios (P/E ratio = market value per share ÷ earnings per share; $69.41 ÷ $3.75 = 18.51). https://openstax.org/books/principles-finance/pages/6-5-market-value-ratios; exact 6941/375 (Python Fraction); yield 3.75 ÷ 69.41 × 100 by hand in content.mdx"
    },
    {
      "given": {
        "price": 20,
        "eps": 2
      },
      "expect": {
        "pe": 10,
        "yield": 10
      },
      "source": "U.S. Securities and Exchange Commission, Beginners' Guide to Financial Statements (P/E ratio = price per share ÷ earnings per share; a $20 stock earning $2 a share has a P/E of 10). https://www.sec.gov/about/reports-publications/beginners-guide-financial-statements; yield 2 ÷ 20 × 100 = 10%"
    },
    {
      "given": {
        "price": 150.25,
        "eps": 6.01
      },
      "expect": {
        "pe": 25,
        "yield": 4
      },
      "source": "hand calculation in content.mdx: 150.25 ÷ 6.01 = 25; 6.01 ÷ 150.25 × 100 = 4%"
    }
  ],
  "sources": [
    "U.S. Securities and Exchange Commission, Beginners' Guide to Financial Statements: P/E ratio = price per share ÷ earnings per share; a stock at $20 earning $2 a share has a P/E of 10. https://www.sec.gov/about/reports-publications/beginners-guide-financial-statements (retrieved 2026-10-18)",
    "OpenStax, Principles of Finance, 6.5 Market Value Ratios: P/E ratio = market value per share ÷ earnings per share, trailing or forward; Clear Lake Sporting Goods at $69.41 with EPS of $3.75 has a P/E of 18.51. https://openstax.org/books/principles-finance/pages/6-5-market-value-ratios (retrieved 2026-10-18)"
  ],
  "related": [
    "eps",
    "market-cap",
    "dividend-yield",
    "stock"
  ],
  "changelog": []
}