PE Ratio Calculator: PE, P/B, ROE, Debt and Payout

This PE ratio calculator also works out price to book, return on equity, debt to equity, dividend payout ratio and dividend yield. Fill in the numbers you have from a company’s results, and the tool shows every ratio it can calculate. It saves time when you screen dividend and fundamentals stocks.

Quick answer: PE ratio equals share price divided by earnings per share (EPS). Enter price and EPS to get it. Add book value, profit, equity, debt and dividend per share to see the other ratios.

Fundamental ratio calculator

Your ratios appear here.

Take EPS, book value, profit, equity, debt and dividend from the latest results on NSE, BSE or the company’s investor page. Use the same period for every input, and use trailing twelve-month EPS for the PE ratio.

How the PE Ratio Calculator Works

RatioFormulaInputs needed
PE ratioPrice / EPSPrice, EPS
Earnings yieldEPS / Price x 100Price, EPS
Price to book (P/B)Price / Book value per sharePrice, BVPS
Return on equity (ROE)Net profit / Equity x 100Profit, equity
Debt to equityTotal debt / EquityDebt, equity
Dividend payout ratioDividend per share / EPS x 100DPS, EPS
Dividend yieldDividend per share / Price x 100DPS, price
Fill only the fields you have; the tool skips ratios it cannot compute

Worked Example With Made-Up Numbers

InputValueRatioResult
Share priceRs 100PE ratio100 / 5 = 20.0
EPSRs 5Earnings yield5 / 100 = 5.0%
Book value per shareRs 25P/B100 / 25 = 4.0
Net profit / EquityRs 200 cr / Rs 1,000 crROE20.0%
DebtRs 500 crDebt to equity0.5
Dividend per shareRs 2Payout ratio and yield40.0% and 2.0%
The numbers are invented to show the arithmetic

A PE of 20 means investors pay Rs 20 for each rupee of yearly profit. However, the number means little alone. Compare it with the same company’s history, its peers and its growth rate.

How to Read Each Ratio

RatioHigher usually meansWatch out for
PE ratioInvestors expect more growth, or the stock is expensiveOne-off profits that distort EPS
P/BThe price sits well above book valueBanks and asset-light firms use P/B differently
ROEThe company earns more on owners’ moneyHigh debt can inflate ROE
Debt to equityMore borrowing relative to equityNorms differ by sector
Payout ratioA bigger share of profit is paid outAbove 100 percent is hard to sustain
Dividend yieldMore income per rupee investedA falling price can inflate it
No ratio gives a verdict on its own

For deeper reading, see our shareholders’ equity guide and highest dividend paying stocks in India. The dividend payout ratio guide explains payout ratio in detail, and the stock market glossary lists terms used in this tool.

Using Ratios After a Bonus or Split

A bonus or split changes EPS, book value and price by the same factor. Therefore, the PE and P/B ratios stay the same, but raw EPS and price figures look different. Use the stock split calculator to adjust figures before you compare years, and the rights issue calculator when a company raises equity.

Run the calculation for two or three peers side by side and note the differences. A company with a lower PE but weaker ROE and higher debt is not automatically cheaper. Therefore, read ratios as a group, and revisit them after each quarterly result.

Common Mistakes

  • Mixing standalone and consolidated numbers.
  • Using forward EPS in one input and trailing EPS in another.
  • Comparing PE ratios across unrelated sectors.
  • Ignoring debt when ROE looks high.
  • Treating a high dividend yield as safe without checking the payout ratio.

Frequently Asked Questions

How do I calculate the PE ratio?

Divide the share price by earnings per share for the last twelve months. The tool does this when you enter both.

What is a good PE ratio?

There is no single number. Compare it with the company’s history and its sector peers, and consider growth.

What does the price to book ratio show?

It compares the share price with book value per share. See the equity guide for how book value is built.

How is ROE calculated?

ROE equals net profit divided by shareholders’ equity, shown as a percentage.

What is a safe dividend payout ratio?

It depends on the business. A payout well below 100 percent leaves room to reinvest and to keep the dividend steady.

Why can I not see some ratios?

The tool shows only ratios for which you filled all the required inputs.

Does the calculator store my data?

No. It runs in your browser and sends nothing to our server.

Final Thoughts

Use the PE ratio calculator as a quick screen, then read the full results and filings. Browse the dividend yield calculator and the rights issue calculator on Investor Weekly News. This page is educational and is not investment advice.

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Independent & informational. Investor Weekly News is not affiliated with any company, broker, stock exchange or regulator. Nothing on this site is investment advice.