What is EPS & P/E Ratio Calculator?
Calculate EPS (Earnings Per Share) and P/E ratio for fundamental analysis and stock valuation Simply enter your values, and the calculator instantly computes accurate results using standard financial formulas. All calculations are performed entirely in your browser — nothing is stored or transmitted.
Formula Used
EPS shows profit per share. P/E shows how many years of earnings you pay for each rupee of stock. Low P/E may mean undervalued or low-growth. High P/E may mean overvalued or high-growth expectations.
How to Use This Calculator
- Enter the company's net profit (annual, from P&L statement)
- Enter total number of shares outstanding
- Enter current market price of the stock
- Click Calculate to see EPS, P/E ratio, and implied fair value at sector P/E
- Compare P/E with industry peers to assess valuation
Worked Example
Net Profit: ₹1,000 Cr | Shares: 100 Cr | EPS: ₹10 | Price: ₹250 → P/E = 25× | If sector P/E = 20×, Fair Value = ₹200 (25% overvalued)
Why Use This Tool?
- Assess if a stock is overvalued or undervalued vs peers
- Find intrinsic value using earnings-based valuation
- Compare P/E across sectors for relative valuation
- Track EPS growth trend to predict future stock performance
Frequently Asked Questions
What is a good P/E ratio for Indian stocks?
P/E ratios vary significantly by sector. IT sector: 25-35× | FMCG: 40-60× | Banking/NBFC: 10-20× | Pharma: 25-40× | Infrastructure: 15-25×. Compare P/E to the stock's own historical P/E and sector average. Nifty 50 average P/E is typically 18-22×.
What is trailing vs forward P/E?
Trailing P/E uses actual earnings from the last 12 months (more reliable). Forward P/E uses estimated future earnings (more relevant for growth stocks). Forward P/E is lower than trailing P/E for growing companies as earnings are expected to increase.
Can P/E alone tell if a stock is a good buy?
No. P/E must be combined with other metrics: P/B ratio, ROE, debt levels, revenue growth, management quality, and sector outlook. A low P/E stock may be cheap for good reasons (declining business). A high P/E may be justified by strong growth. Use P/E as one input, not the sole criterion.
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