P/E explorer
Turn the market’s most quoted ratio into something concrete: how many years of current profit you are paying for, and what that implies you must believe.
Runs entirely in your browserRuns entirely on your device — nothing you type is sent anywhere. Educational only, and not investment advice.
How to use this calculator
Each step names a control you will find on screen above.
- Share price
What the stock trades at today.
- Earnings per share
Annual profit divided by shares outstanding. Use trailing twelve months for what is real, or forward estimates for what is hoped — and never mix the two when comparing companies.
- Read the earnings yield
The inverse of P/E, shown as a percentage. This is the figure to compare against a fixed deposit or a government bond, because it is in the same units.
- Read the payback years
How many years of current profit equal the price. It reframes a ratio as a statement about time, which is much harder to hand-wave.
Worked example: A stock at 30 times earnings
The share trades at ₹2,400 and earned ₹80 per share over the last twelve months.
What to enter
- Share price
- ₹2,400
- Earnings per share (a year)
- ₹80
What it shows you
- P/E
- 30×
- Earnings yield
- 3.3%
- Years of profit you are buying
- 30
- A 10-year G-Sec pays
- ≈ 7%
₹80 ÷ ₹2,400
risk-free, for comparison
Where this is taught
A calculator gives you a number. These explain what the number means and when it misleads you.
- Fundamental Analysis12 minValuation ratiosP/E, P/B, EV/EBITDA, P/S and PEG — what each compares, when each is the right tool, and when each one lies.
- Fundamental Analysis13 minA full side-by-side comparisonEverything in this track, applied at once. Two competitors, the same eight questions, and how to reach a decision without pretending the answer is obvious.
- Risk & Psychology12 minWhat a bubble feels like from insideBubbles are obvious afterwards and genuinely difficult to identify at the time — because the strongest evidence is that everyone around you is being proved right.
- Fundamental Analysis11 minMarket capitalisation and enterprise value: two ways to say what a company costsThe price of the equity is not the price of the business. Debt and cash sit between the two, and every multiple you use depends on which one you picked.
- Risk & Psychology12 minThe stories the market tells itselfPrices move on numbers. Which numbers people look at, and what they take them to mean, is decided by a story — and the story changes faster than the business does.