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

- All Ratio Calculators
- Simple Ratio Calculator
- Return on Investment Ratio Calculator
- Price/Earnings Ratio Calculator

## 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:

- First, determine the average share price ($).
- The average share price ($) is given as: 500.

- Next, determine the earnings per share ($).
- The earnings per share ($) is provided as: 250.

- 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** = ?**