Frequently asked questions
Plain-language answers about when to use the estimate, what your numbers mean, what is left out, and how privacy works.
When should I use the Stock Ratios Calculator?
Use it when you want to test the exact inputs on this page: Calculate common stock valuation ratios from per-share numbers. Compare P/E, price-to-sales, and price-to-book side by side. The result is a check against your assumptions, not proof that a lender, tax app, broker, platform, or provider will use the same number.
What do the main Stock Ratios Calculator inputs mean?
Stock price means the share price you want to compare with earnings, sales, book value, and dividends. EPS, sales per share, and book value per share means per-share fundamentals used as denominators for valuation ratios. Dividend per share means annual dividend per share used for dividend yield and payout ratio.
What is the Stock Ratios Calculator doing with my numbers?
In plain language: The calculator divides stock price by EPS for P/E, by sales per share for P/S, and by book value per share for P/B. It divides annual dividend per share by stock price for dividend yield, then divides dividend per share by EPS for payout ratio. Use per-share numbers from the same reporting period when possible. Check whether EPS is trailing or forward, whether dividends are annualized, and whether book value per share already reflects recent buybacks or share-count changes.
How should I read the Stock Ratios Calculator answer?
P/E says how many dollars of price sit on each dollar of EPS. P/S compares price with sales per share. P/B compares market price with accounting book value. Dividend yield compares dividend with price, while payout ratio compares dividend with EPS.
What does this estimate leave out?
This does not include future growth, analyst estimates, debt risk, accounting quality, share dilution, dividend cuts, buybacks, industry norms, taxes, trading fees, portfolio fit, or investment advice. Use full filings, earnings notes, cash-flow reports, debt ratios, profit ratios, dividend history, share-count notes, industry comparisons, and personal risk limits before treating a stock ratio as useful.
What should I double-check before copying the result?
Double-check EPS type, share splits, stale prices, special dividends, missing dividends, negative EPS, and whether the company changed its share count or balance sheet after the numbers you entered.
What does P/E mean?
P/E means price-to-earnings. A P/E of 15x means the stock price is 15 times the earnings per share entered. It is a comparison tool, not a yes-or-no investment answer.
Why does this calculator require positive EPS?
A normal P/E ratio is easiest to understand when earnings per share are positive. If EPS is zero or negative, the P/E ratio usually needs extra explanation instead of a simple calculator number.
What is the difference between dividend yield and payout ratio?
Dividend yield compares the annual dividend with the share price. Payout ratio compares the same dividend with EPS. A stock can have a high yield because the dividend is large, because the price fell, or because the market expects trouble.
Why can price-to-book be misleading?
Book value comes from accounting records. It may miss brand value, software, debt risk, old asset values, buybacks, or write-down risk. P/B is a clue, not a full valuation.
Does the site save my finance inputs?
No. The calculator runs in your browser tab. Recent answers stay only on the page while you use it, and they are not sent to a server.