Pe ratio formula: Learn how to calculate and interpret

Learn how to calculate and interpret the P / E ratio , a popular valuation metric that compares a company's stock price to its earnings per share. Find out the types, uses, and limitations of P / E ratio , and download a free Excel template. Price earnings ratios ( P/E ratio ) measures how many times the earnings per share (EPS) has been covered by current market price of an ordinary share. The PE Ratio ( Price-to-Earnings ) is a commonly used valuation metric for stocks. It is calculated by dividing the stock price with the earnings per share. The price-to-earnings ratio calculator is a tool that helps you calculate the price/earnings ratio ( P/E ratio ) -an indicator that measures the attractiveness of shares.