Enter the average share price ($) and the earnings per share ($) into the PE Ratio Calculator. The calculator will evaluate and display the PE Ratio. 

PE Ratio Formula

The following formula is used to calculate the PE Ratio. 

PE = SP / EPS

  • Where PE is the PE Ratio
  • SP is the average share price ($) 
  • EPS is the earnings per share ($) 

How to Calculate PE Ratio?

The following example problems outline how to calculate PE Ratio.

Example Problem #1:

  1. First, determine the average share price ($). 
    • The average share price ($) is given as: 500.
  2. Next, determine the earnings per share ($). 
    • The earnings per share ($) is provided as: 250.
  3. Finally, calculate the PE Ratio using the equation above: 

PE = SP / EPS

The values given above are inserted into the equation below and the solution is calculated:

PE = 500 / 250 = 2.00

Example Problem #2: 

For this problem, the variables required are provided below:

average share price ($) = 600

earnings per share ($) = 300

Test your knowledge using the equation and check your answer with the calculator above.

PE = SP / EPS = ?