Independent finance learning
P/E Ratio Calculator
Calculate price-to-earnings from a share price and positive EPS, with consistent units and a worked example.
Try the numbers
Formula and inputs
P/E = share price ÷ earnings per share
Use price and annual EPS in the same currency units. Enter positive EPS and state whether you are using past or forecast earnings in your own analysis.
Worked example
A £24 share price and £2 of annual EPS produce a P/E ratio of 12×.
Assumptions and limitations
A low multiple is not automatically good value. The calculator does not evaluate earnings quality, debt or growth. Zero or negative EPS does not support a conventional positive P/E comparison.
Understand the result
P/E ratio explained: formula, examples and limitationsSources and further reading
Sources checked 4 October 2026. Worked examples are fictional HC teaching illustrations.