**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:

## 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:

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

\[ \text{PE} = \displaystyle \frac{\text{Price per share}}{\text{Earnings per share}}\]In case you have any suggestion, or if you would like to report a broken solver/calculator, please do not hesitate to **contact us**.