P/E Ratio Calculator – PEG & Fair Price

Calculate the P/E ratio, earnings yield and PEG of a stock, and the price it would trade at for any target P/E.

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P/E ratio calculator

The price-to-earnings (P/E) ratio is the most quoted valuation number in the stock market. This calculator gives you the P/E from the share price and EPS, the earnings yield to compare with FD and bond rates, the growth-adjusted PEG ratio, and the price the stock would trade at if it moved to a P/E you consider fair — a quick sanity check before you buy. Find EPS in the company's results or on your broker's stock page.

How to use it

  1. Enter the share price and trailing-twelve-month EPS.
  2. Optionally add expected EPS growth and a P/E you think is fair.
  3. Compare the results with peers in the same industry.

Example

A stock at ₹1,500 with EPS of ₹60 has a P/E of 1,500 ÷ 60 = 25 and an earnings yield of 4%. If earnings are expected to grow 15% a year, the PEG is 25 ÷ 15 ≈ 1.67. At a P/E of 22 — say, the sector average — the price would be 22 × 60 = ₹1,320, 12% below today. For a deeper estimate based on cash flows, try the DCF intrinsic value calculator.

Disclaimer: Results are estimates for educational purposes only and are not financial, investment or tax advice. Please verify with your bank, broker or a SEBI-registered adviser before acting. Read the full disclaimer.

Frequently asked questions

What is the P/E ratio?
Price-to-earnings = share price ÷ earnings per share (EPS). A P/E of 25 means investors pay ₹25 for every ₹1 of yearly profit. Use trailing twelve-month (TTM) EPS for the current P/E, or next year’s estimate for a forward P/E.
What is a good P/E ratio?
There is no single good number. Compare a company with its own history, its industry peers and its growth rate. The Nifty 50 has often traded around 18–24 times earnings; fast-growing companies trade higher, cyclical and slow-growth ones lower.
What is the PEG ratio?
PEG = P/E ÷ expected yearly EPS growth (%). It adjusts the P/E for growth. Around 1 is often seen as fair; below 1 may be cheap for the growth, above 2 expensive — but growth estimates are uncertain.
What is earnings yield?
The inverse of P/E: EPS ÷ price × 100. A P/E of 20 is an earnings yield of 5%, which you can compare with fixed-deposit or bond yields.
Why is the P/E negative or missing?
When a company makes a loss, EPS is negative and the P/E isn’t meaningful. Use other measures such as price-to-sales or price-to-book instead.

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