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Stock metrics: How we calculate

Calculate key metrics for one share from your own inputs.

How we calculate

Earnings per share (EPS) uses net income and weighted average shares. Price/earnings (P/E) divides the share price by EPS; price/book value (P/B) divides price by book equity per share. The dividend payout ratio divides the annual dividend per share by EPS. P/E and payout are not shown for zero or negative earnings; P/B is not shown for non-positive book equity.

What the figures mean

Earnings per share (EPS)

Company earnings divided by the number of shares. The amount is not necessarily paid out as a dividend.

Simple example: €10,000 earnings divided by 1,000 shares gives €10 per share.

Share price relative to earnings (P/E)

Share price divided by earnings per share. This is a multiple, not a return percentage; the usual interpretation does not apply to a loss.

Simple example: A €100 price and €10 earnings per share give a multiple of 10.

Share price relative to book equity (P/B)

Share price divided by book equity per share. Equity recorded in the accounts is not the market valuation of the business.

Simple example: A €100 price and €50 book equity per share give a multiple of 2.

Worked example

Example: a share costs €25, annual dividend is €1 per share, company net income is €1,000,000, average shares are 100,000 and book equity is €2,000,000. EPS is €10, P/E is 2.5, book value per share is €20, P/B is 1.25 and dividend yield is 4%. These ratios describe different aspects; none alone determines fair value.

Use profit, dividends and share counts from comparable periods. P/E is generally not meaningful for a loss-making company; a high dividend yield may reflect a falling price or one-off payment. The example assumes an unchanged share count. Book value per share uses the same entered share count as EPS in this calculator; if shares change, distinguish the balance-date count from the period average separately.

Sources and methodology