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 = ?