Pe Ratio Formula Calculator
P/E Ratio Calculator works out Current ratio and Quick (acid-test) ratio from Market price per share and Earnings per share. The default figures on this page give price/earnings ratio of 15.0000; change any entry and the result, the working and the sources update together.
Your figures
Updates as you typeHow this is worked out
1 step
- P/E = share price / earnings per share = 45 / 3 = 15
Ratios computedtable
Its 5 worked examples are re-run on every release, last on 15 September 2026. What changed
Sources and references
3 sources
Keep this result
Save it, change one figure, then compare the two
The calculation stays free. Save this scenario, adjust one assumption, save that too, and put them side by side to see exactly what the change costs you. A free account keeps 5 scenarios and 2 comparisons; Personal makes both unlimited and adds exports and private links. Nothing is saved unless you press Save.
What the P/E Ratio Calculator calculates
Computes liquidity, leverage, coverage and profitability ratios - current and quick ratios, working capital, debt-to-equity, interest coverage, DSCR, ROE, ROA, operating leverage, capital adequacy and P/E - from financial-statement line items.
How to use this P/E Ratio Calculator
Enter Market price per share and Earnings per share. Current ratio updates as you type. Change one figure at a time to see what drives the result.
How the result is worked out
Open “How this is worked out” beside the result for the step-by-step calculation behind Current ratio, Quick (acid-test) ratio and Net working capital.
The method follows Basel Committee on Banking Supervision, Basel III capital framework: capital ratio = eligible capital / risk-weighted assets, DuPont identity: equity multiplier (financial leverage) = total assets / total equity and Price/earnings ratio = market price per share / earnings per share.
What you can compare
Change one input at a time to see how it affects Current ratio, Quick (acid-test) ratio and Net working capital. The inputs you can vary are Market price per share and Earnings per share.
Understanding Current ratio, Quick (acid-test) ratio and Net working capital
Ratio arithmetic on the figures you enter. Lenders, regulators and analysts define these line items differently (book versus market value, average versus closing balances, leases and off-balance-sheet items), so agree the definitions before relying on a figure.
Results are general information, not financial, tax, legal, medical or engineering advice. Check any decision that matters with a qualified professional.
See something wrong? Report a problem with this calculator
Frequently asked questions
How do you calculate PE ratio?
Computes liquidity, leverage, coverage and profitability ratios - current and quick ratios, working capital, debt-to-equity, interest coverage, DSCR, ROE, ROA, operating leverage. Open “How this is worked out” beside the result to see each step for your own figures.
What is a good PE ratio?
Computes liquidity, leverage, coverage and profitability ratios - current and quick ratios, working capital, debt-to-equity, interest coverage, DSCR, ROE, ROA, operating leverage. On this page it is computed from Market price per share and Earnings per share and shown as Current ratio, Quick (acid-test) ratio and Net working capital.
What did Warren Buffett say about PE ratio?
It needs Market price per share and Earnings per share. Nothing else is required, and the figures stay in your browser.
What does a 20 PE ratio mean?
The result gives Current ratio, Quick (acid-test) ratio, Net working capital, Debt-to-equity ratio, Debt-to-assets ratio and Financial leverage (equity multiplier), each labelled with its unit so the figure can be read on its own.
What P/E ratio is considered too high?
The page opens with worked default figures: price/earnings ratio of 15.0000. Replace them with your own and every figure updates as you type.
What information do I need for the P/E Ratio Calculator?
You need Market price per share and Earnings per share. The page opens with default figures that give price/earnings ratio of 15.0000, so you can see the scale before entering your own.