P/E Ratio Calculator
Calculate the price-to-earnings ratio for any stock, estimate fair value using the PEG ratio and Graham Number, and see if a stock is overvalued or undervalued.
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Frequently asked
questions
It depends heavily on the sector and growth rate. The S&P 500 historically averages 15–20×. High-growth tech companies often trade at 30–60×. Mature utilities may trade at 10–15×. A P/E is only meaningful when compared to peers and growth rate (see PEG ratio).
PEG = P/E ÷ EPS growth rate (%). A PEG under 1.0 suggests a stock may be undervalued relative to its growth. A PEG near 1.0 is fairly valued. Over 2.0 may signal overvaluation. Peter Lynch popularized this metric.
Developed by Benjamin Graham, the Graham Number estimates fair value as: √(22.5 × EPS × Book Value Per Share). It assumes a fair P/E of 15× and P/Book of 1.5×. It tends to favor value stocks and understates growth stock value.