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
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
| Ratio | Formula | Inputs needed |
|---|---|---|
| PE ratio | Price / EPS | Price, EPS |
| Earnings yield | EPS / Price x 100 | Price, EPS |
| Price to book (P/B) | Price / Book value per share | Price, BVPS |
| Return on equity (ROE) | Net profit / Equity x 100 | Profit, equity |
| Debt to equity | Total debt / Equity | Debt, equity |
| Dividend payout ratio | Dividend per share / EPS x 100 | DPS, EPS |
| Dividend yield | Dividend per share / Price x 100 | DPS, price |
Worked Example With Made-Up Numbers
| Input | Value | Ratio | Result |
|---|---|---|---|
| Share price | Rs 100 | PE ratio | 100 / 5 = 20.0 |
| EPS | Rs 5 | Earnings yield | 5 / 100 = 5.0% |
| Book value per share | Rs 25 | P/B | 100 / 25 = 4.0 |
| Net profit / Equity | Rs 200 cr / Rs 1,000 cr | ROE | 20.0% |
| Debt | Rs 500 cr | Debt to equity | 0.5 |
| Dividend per share | Rs 2 | Payout ratio and yield | 40.0% and 2.0% |
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
| Ratio | Higher usually means | Watch out for |
|---|---|---|
| PE ratio | Investors expect more growth, or the stock is expensive | One-off profits that distort EPS |
| P/B | The price sits well above book value | Banks and asset-light firms use P/B differently |
| ROE | The company earns more on owners’ money | High debt can inflate ROE |
| Debt to equity | More borrowing relative to equity | Norms differ by sector |
| Payout ratio | A bigger share of profit is paid out | Above 100 percent is hard to sustain |
| Dividend yield | More income per rupee invested | A falling price can inflate it |
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.