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P/E Ratio Calculator

Enter stock price, EPS, and industry average P/E to get instant valuation insights including PEG ratio and fair value estimate.

Updated July 2026 · Editorial standards

Price-to-earnings ratio
15.0x
Fair value
$200.00
PEG ratio
1.00
VerdictUndervaluedIndustry avg P/E20xStock price$150.00EPS$10.00

Stock Metrics

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$
x
%

Key figures

P/E ratio
15.0x
Fair value
$200.00
PEG ratio
1.00
Industry avg P/E
20x

P/E of 15.0x vs industry average 20x → fair value ~$200.00. PEG of 1.00 (PEG < 1 = potentially undervalued). Verdict: Undervalued.P/E ratio = stock price ÷ EPS. PEG ratio = P/E ÷ growth rate. A PEG below 1 suggests the stock may be undervalued relative to its growth. Context matters — compare within the same sector.

P/E ratio
15.0x
By KalkWiseVerified against official sources Updated July 2026

What is the p/e ratio calculator — price-to-earnings & fair value?

In short

P/E ratio = stock price ÷ earnings per share (EPS). A stock at $150 with $10 EPS has a P/E of 15x — you pay $15 for every $1 of annual earnings. The S&P 500's long-run average P/E is 15–17x; the 2020–2024 range was 20–35x. Below 15x is historically cheap; above 25x implies strong growth expectations. The PEG ratio (P/E ÷ growth rate) adjusts for growth — a PEG below 1.0 suggests undervaluation.

Calculates P/E ratio, estimated fair value based on industry average P/E, and PEG ratio to assess whether growth justifies the multiple.

How to use this calculator

  1. 1Enter the current stock price.
  2. 2Enter EPS (trailing 12 months, from earnings reports).
  3. 3Enter the industry average P/E for context.
  4. 4Enter expected annual earnings growth rate for PEG calculation.

The formula

P/E=priceEPS
fair value=EPS×industry P/E
PEG=P/Egrowth rate (%)
P/E = P ÷ E; Fair Value = E × Industry P/E; PEG = P/E ÷ g
P
— Stock price
E
— Earnings per share (EPS)
g
— Expected growth rate (%)

Worked example

The scenario

Stock at $150, EPS $10, industry P/E 20x, growth 15%/yr.

gives

The result

P/E = 15x. Fair value = $200 (10 × 20). PEG = 1.0. Stock appears Fairly Valued to slightly undervalued.

Common use cases

  • Compare valuation across stocks in the same sector.
  • Estimate fair value based on industry norms.
  • Screen for undervalued growth stocks using PEG ratio.
  • Monitor whether a stock's valuation has expanded or contracted.

Limitations & assumptions

  • P/E uses trailing earnings — forward P/E may paint a different picture.
  • Not meaningful for unprofitable companies (negative EPS).
  • Industry averages vary widely — tech P/Es are structurally higher than utility P/Es.
  • One metric only — use alongside revenue growth, margins, and debt levels.

Frequently asked questions

Below 15x is historically considered value territory for the S&P 500. But context matters: a utility at 12x may be fairly priced while a fast-growing tech stock at 30x may still be cheap relative to growth. During 2022's correction, many high-quality S&P 500 stocks fell to 12–16x — historically a strong buying zone.

Disclaimer: KalkWise calculators are provided for general informational and educational purposes only and do not constitute financial, investment, tax, or legal advice. Results are estimates based on the figures you enter and the assumptions described above. Actual outcomes will vary. Consult a qualified professional before making financial decisions.