P/E Ratio Calculator
This calculator helps you determine the Price-to-Earnings (P/E) ratio of a stock. The P/E ratio is a measure of a company's current share price relative to its per-share earnings.
Key Terms
- Price-to-Earnings (P/E) Ratio: A valuation ratio, calculated by dividing the current share price by the earnings per share (EPS). It indicates how much investors are willing to pay for a dollar of earnings.
- Share Price: The current market price of one share of the company's stock.
- Earnings per Share (EPS): The portion of a company's profit allocated to each outstanding share of common stock.