Calculate price-to-earnings ratio, forward P/E, PEG ratio, and compare stock valuations against industry benchmarks.
Enter a stock's current price alongside its trailing EPS, and optionally a forward EPS estimate and an expected earnings growth rate, and the calculator returns three figures: trailing P/E, forward P/E, and PEG. Each is a plain division, not a modeled valuation. The number people misread most often is PEG: it only comes out right when the growth rate is entered as a whole number like 15 (for 15%), not 0.15, and a low PEG on a company with a one-time earnings spike says nothing about sustainable value.
A concrete input and expected output from the current implementation.
Input
Stock price: $150.00, Trailing EPS: $6.00, Forward EPS: $7.50, Expected EPS growth rate: 15
Expected output
Trailing P/E: 25.0, Forward P/E: 20.0, PEG ratio: 1.67
150 / 6 = 25.0 for trailing P/E, 150 / 7.5 = 20.0 for forward P/E, and 25.0 / 15 = 1.67 for PEG, since the growth rate is entered as a plain number rather than a decimal.
Trailing P/E divides the price you enter by trailing twelve-month EPS. Forward P/E divides the same price by a forward EPS estimate you supply. PEG divides the trailing P/E by the expected annual EPS growth rate, entered as a whole number (15 for 15%, not 0.15). All three recalculate immediately whenever an input changes.
Alongside the calculated ratios, you can enter a comparison P/E, such as a sector average or a named peer's ratio, and the tool shows how the entered stock's P/E compares to it as a difference or multiple. That benchmark number is something you look up and type in yourself; the tool does not fetch live market or sector data.
Because the EPS you entered is negative, meaning the company reported a loss over the period used. A negative P/E is not a signal of an undervalued stock - the ratio simply is not meaningful when earnings are negative, and it should be read as 'not applicable' rather than a bargain.
A PEG near 1.0 is a commonly cited rule of thumb for fair pricing relative to growth, but it is a heuristic, not a threshold this tool enforces, and typical PEG levels vary by sector and by how reliable the growth estimate is. Treat the number as a starting point for comparison, not a verdict.
The example and behavioral notes were checked against the browser implementation. Standards and primary references below define the relevant format, formula, or platform behavior.
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