Tool
P/E calculator
Enter a price and earnings per share. Add a growth guess to see PEG and how long the earnings take to "pay back" the price.
P/E
—
price ÷ EPS
Earnings yield
—
EPS ÷ price
PEG
—
P/E ÷ growth %
Payback
—
years of EPS to equal price
How to read the results
- P/E: dollars paid per $1 of yearly profit. See Lesson 4.
- Earnings yield: the P/E flipped. Useful for comparing with bond or savings rates.
- PEG: a rough growth adjustment. Near 1 is often called "fair for its growth." It's only as good as your growth guess.
- Payback: if EPS grows at your rate, how many years of earnings add up to today's price. Faster growth shortens payback a lot, which is why investors pay high P/Es for growers.
Preset prices are old
The company buttons load dated snapshot prices. Type today's price for a current reading.