Calculate Price-to-Earnings ratio and fair value for stock valuation
Find EPS in company's annual report or financial statements
P/E Ratio
20.00x
Fairly valued
Market Price
₹1500
EPS
₹75
Get AI-powered portfolio analytics, real-time alerts, and comprehensive market insights.
View Premium PlansThis calculator is for informational and educational purposes only. It does not constitute financial or investment advice. Consult with a qualified financial advisor before making investment decisions.
The P/E (Price-to-Earnings) Ratio Calculator helps you evaluate whether a stock is undervalued or overvalued by comparing its market price to its earnings per share (EPS). The P/E ratio is one of the most widely used valuation metrics in stock market analysis. A lower P/E might indicate an undervalued stock, while a higher P/E suggests investors expect high future growth. This calculator can determine P/E ratio, fair value based on target P/E, or required EPS for a target P/E.
There's no universal 'good' P/E ratio. It varies by industry. Generally, P/E of 15-20 is considered reasonable for mature companies, while growth stocks may have P/E of 30-50+. Always compare P/E with industry peers and historical averages.
Not always. A low P/E could indicate an undervalued opportunity OR a struggling company with poor growth prospects. Always investigate why the P/E is low by analyzing company fundamentals, industry trends, and growth potential.
Trailing P/E uses past 12 months' actual earnings, while forward P/E uses projected future earnings. Forward P/E is more speculative but helps evaluate growth expectations. Most platforms show trailing P/E by default.
Technology and growth companies often have high P/E ratios (40-100+) because investors expect rapid future earnings growth. They're willing to pay a premium today for anticipated future profits. This is why P/E should be evaluated alongside growth metrics like PEG ratio.
Negative P/E occurs when a company has negative earnings (losses). It doesn't mean the company is worthless. Startups and turnaround stories often have negative P/E. Analyze the business model, cash flow, and path to profitability instead.