Finance

Calculate the P/E ratio

How it works in Excel

• B1 is the share price.
• B2 is earnings per share.
• A high P/E can mean investors expect growth, or that the stock is expensive.
• It means little when earnings are negative.

The idea in general

It shows how many dollars investors pay for one dollar of yearly profit.

What I assumed

• The price is in B1 and earnings per share are in B2.

Check the result on your own data before relying on it.