# Price Earnings Ratio Calculator

Instructions: You can use this Price-Earnings Ratio Calculator $$(PR)$$, by providing the Net Income, the number of shares outstanding and the price per share in the form below: Net Income = Number of Shares Outstanding = Price per share =

## Price-Earnings Ratio Calculator

More about the Price-to-Earnings Ratio so you can better use the results provided by this solver. The Price-Earnings Ratio $$(PE)$$ is the ratio of price per share to earnings per share. This ratio is a market value measure, and it indicates how many dollars investors are willing to pay for a share of the firm, for each \$1 in current earnings. First, we compute the EPS using the formula below:

$\text{EPS} = \displaystyle \frac{\text{Net Income}}{\text{Number Shares Outstanding}}$

Now, once the earnings-per-share are already calculated, we can compute the price-to-earnings ratio as follows:

$\text{PE} = \displaystyle \frac{\text{Price per share}}{\text{Earnings per share}}$

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