P/E Ratio Calculator with Live Sector Benchmarks
Compute the P/E ratio in seconds and compare it with live sector medians from our database. Free, with formula, worked example and benchmarks.
Also available in German: KGV berechnen: KGV-Rechner mit Branchenvergleich →
Inputs
Share price
Also called: Stock price, market price
Where to find it: Any finance site (Google/Yahoo Finance) — the current trading price per share.
How to derive: Set by the market; just enter the current price per share.
Earnings per share (EPS)
Also called: EPS, net income per share
Where to find it: Bottom of the income statement, or the key-stats box on finance portals.
How to derive: Net income ÷ shares outstanding.
Result, live
P/E only means something in industry & growth context - combine with PEG.
The price/earnings ratio (P/E) is the single most-quoted valuation number: it tells you how many years of current earnings you are paying for. This calculator divides the share price by earnings per share in seconds and shows instantly whether a stock looks cheap or expensive.
How the formula works
The P/E ratio divides the current share price by the earnings a company makes per share over a year. The calculator also flips the result into an earnings yield — how much profit each dollar of price buys you.
Earnings yield = EPS ÷ share price × 100
Example: A stock trades at $100 and earns $6.50 per share. P/E = 100 ÷ 6.50 = 15.4, an earnings yield of about 6.5%. Roughly market-average — you pay about 15 years of current profit.
How to read the result
- Below 15 — moderately valued; you pay a low price for current profit.
- 15 to 25 — around the market average for a healthy company.
- Above 25 — high expectations are priced in; growth has to deliver.
- No P/E — the company is loss-making; use price-to-sales instead.
What to watch out for
- Growth matters. A P/E of 30 can be cheap for a fast grower and dear for a stagnant one — pair it with the PEG.
- Earnings can be distorted. One-off charges or gains bend the number; check whether profit is normal.
- Industries differ. Compare a bank to banks, not to software.
P/E ratio by sector: what is normal?
A P/E only means something next to its own sector: software structurally trades richer than banks or real estate. For context, the median P/E ratios from our valued universe (12,000+ profitable companies worldwide, as of August 2026):
- Real Estate 11.7 · Financials 12.3 · Communication Services 14.9
- Materials 17.2 · Utilities 17.5 · Consumer Discretionary 17.7 · Consumer Staples 17.8 · Energy 17.8
- Industrials 19.5 · Health Care 22.0 · Information Technology 23.6
Rule of thumb: a P/E clearly below the sector median means the stock screens cheap relative to peers, but deserves a second look at why (falling earnings? one-off?). Clearly above, the market pays a premium that growth still has to earn. The Fair Value Calculator shows every stock’s P/E right next to its peer group.
A P/E ratio only means something next to the company's own sector: banks and real estate trade at low P/E ratios, software and health care at high ones. The table shows median and range for every sector from our database, updated daily.
| Sector | Lower quartile | Median | Upper quartile | Stocks |
|---|---|---|---|---|
| Financials | 8.9 | 12.8 | 20.0 | 2,687 |
| Real Estate | 7.8 | 12.9 | 25.0 | 1,253 |
| Energy | 9.8 | 15.8 | 27.9 | 632 |
| Consumer Staples | 11.5 | 17.5 | 28.4 | 1,262 |
| Utilities | 10.9 | 17.6 | 26.7 | 538 |
| Communication Services | 10.4 | 17.7 | 35.5 | 646 |
| Consumer Discretionary | 11.3 | 18.9 | 33.5 | 2,553 |
| Materials | 11.8 | 19.4 | 36.0 | 2,193 |
| Industrials | 12.6 | 21.5 | 38.8 | 3,836 |
| Health Care | 14.6 | 24.2 | 43.5 | 1,324 |
| Information Technology | 16.6 | 29.7 | 59.5 | 2,178 |
Source: the Fair Value Calculator database, 19,102 stocks with a valid value for P/E ratio, as of Sep 5, 2026. Median: half of the sector's stocks sit below it. Lower and upper quartile: 25 % sit below or above. Values move daily with prices. All valuation ratios by sector →