Stock Ratios Calculator

EPS is calculated by dividing net income by the number of shares outstanding. It shows how much profit the company earns for each share. Higher EPS indicates greater profitability. Compare EPS growth year-over-year to assess earnings trends.

P/E ratio varies significantly by industry and growth stage. Generally, a P/E below 15 is considered value territory, 15-25 is moderate, and above 25 indicates high growth expectations. Always compare P/E to industry averages and the company's historical P/E.

The PEG ratio divides P/E by the earnings growth rate, accounting for growth in valuation. A PEG below 1 suggests the stock may be undervalued relative to its growth, while above 2 may indicate overvaluation. PEG is particularly useful for comparing growth stocks.

P/B ratio compares market price to book value per share. A P/B below 1 means the stock trades below its net asset value, potentially indicating undervaluation or distress. High P/B ratios are common in tech and companies with significant intangible assets.

Dividend payout ratio (dividends / net income) shows what percentage of earnings are paid as dividends. A ratio of 30-60% is often considered healthy, balancing shareholder returns with reinvestment. Very high ratios (80%+) may be unsustainable.

Valuation ratios vary significantly by sector. Technology companies often have high P/E and P/B ratios due to growth expectations. Utilities and financials typically have lower P/E ratios. REITs often show high P/E due to their structure. Always compare within the same industry.

Book value per share equals total equity (assets minus liabilities) divided by shares outstanding. It represents the theoretical value shareholders would receive if the company liquidated. A stock trading below book value may indicate undervaluation or fundamental problems.

Dividend yield equals annual dividends per share divided by stock price, expressed as a percentage. A 3% yield means you receive $3 in dividends for every $100 invested. Compare yields within sectors, as different industries have different typical yields.