Calculate key stock performance ratios including Earnings Per Share, P/E Ratio, Price to Sales Ratio, Price to Book Value Ratio and Dividend Payout Ratio.
Stock ratios translate raw financial statement data into per-share metrics investors use to compare companies. This calculator computes earnings per share (EPS), price-to-earnings (P/E), price-to-sales (P/S), price-to-book (P/BV), dividend payout ratio, and dividend yield from your inputs.
Dividend Yield=Price per ShareDividends per Share×100
Worked example with default inputs
Net income = $1,000,000, shares outstanding = 500,000, price per share = $25. EPS = $1,000,000 / 500,000 = $2.00. P/E = $25 / $2 = 12.5. Market cap = $25 x 500,000 = $12,500,000. With $5,000,000 revenue, P/S = 2.5. Book value per share = ($8,000,000 - $3,000,000) / 500,000 = $10, so P/BV = 2.5.
How to interpret the results
P/E: Lower may indicate value; higher may reflect growth expectations. Compare within the same industry.
P/S: Useful when earnings are negative or volatile. Lower P/S can signal relative cheapness on revenue.
P/BV: Common for banks and asset-heavy businesses. Below 1 may mean the market prices assets below book.
Dividend payout and yield: Show how much profit is returned to shareholders and the income return at the current price.
Frequently asked questions
What is a good P/E ratio?
Context matters. Mature industries often trade between 10 and 20 times earnings. High-growth sectors may justify higher multiples. Always compare against sector peers and historical averages.
Why use P/S when P/E exists?
P/S is helpful for unprofitable or cyclical companies where earnings are temporarily depressed. Revenue is harder to manipulate than short-term earnings.
What does P/BV below 1 mean?
It can indicate the market values the company below its accounting book value. This may signal distress, conservative accounting, or a potential value opportunity depending on asset quality.
How is dividend yield calculated here?
Dividend yield equals total dividends divided by shares outstanding, divided by price per share, expressed as a percentage. It shows annual dividend income per dollar invested at the current price.
Should I use trailing or forward earnings for P/E?
This calculator uses the net income you enter, typically trailing twelve-month figures from financial statements. Forward P/E uses analyst EPS estimates and will differ.
Resources and references
The formulas and methods in this calculator were checked against these independent sources.