Sigma Calculator — 543+ Free Calculator Tools
Instantly compute P/E, P/B, dividend yield, and earnings yield for any stock.
Using the calculator above takes less than a minute and requires only four numbers you can find on any brokerage statement or finance website. Start by entering the stock’s current share price in dollars. This is the market price at which the stock last traded, and it is the starting point for every valuation ratio on this page.
Next, enter the company’s earnings per share (EPS), which is the portion of annual profit attributed to each outstanding share. Then add the book value per share, representing the company’s net assets divided by its share count. Finally, enter the annual dividend per share — the total cash dividend the company pays out per share each year. If the company does not pay a dividend, simply leave the dividend field at zero.
The results update automatically as you type, and you can also press the Calculate button at any time to refresh them. The results table shows four key ratios: the P/E ratio, the P/B ratio, the dividend yield, and the earnings yield. Press Reset to restore the default example values and start over with a fresh calculation.
Important: This calculator is a screening and educational tool. It performs the arithmetic behind common valuation ratios, but it cannot tell you whether a stock is a good investment. Always do your own research or consult a qualified financial advisor before making investment decisions. Nothing on this page is investment advice.
Stock valuation ratios translate raw financial figures into standardized numbers that let you compare companies of different sizes, industries, and share prices. Instead of asking whether a $150 stock is “expensive,” ratios ask how that price relates to the company’s earnings, assets, and cash payouts. Four of the most widely used ratios are explained below.
P/E ratio (price-to-earnings ratio) divides the share price by earnings per share. It tells you how much investors are paying for each dollar of annual earnings. A P/E of 15 means the market values the company at fifteen times its yearly earnings. High P/E ratios often reflect strong growth expectations, while low P/E ratios can signal a bargain — or a business with real problems.
P/B ratio (price-to-book ratio) divides the share price by book value per share. It compares the market’s valuation of a company with the accounting value of its net assets. A P/B below 1 means the stock trades for less than the company’s stated net worth, which value investors watch closely. The P/B ratio is most meaningful for asset-heavy businesses such as banks and manufacturers, and less useful for software or service companies whose value lives in intangible assets.
Dividend yield expresses the annual dividend per share as a percentage of the share price. A $3 dividend on a $150 stock is a 2.00% yield. Yield matters because it is the cash return you receive simply for holding the shares, before any price appreciation. Income-focused investors often screen for sustainable yields in the 2% to 5% range, while very high yields can warn that the market expects a dividend cut.
Earnings yield is the mirror image of the P/E ratio: earnings per share divided by the share price, expressed as a percentage. A stock with a P/E of 15 has an earnings yield of about 6.67%. Because it is stated as a percentage, the earnings yield can be compared directly with bond yields or savings rates, which makes it a favorite tool for judging whether stocks as a group look cheap or expensive relative to fixed income.
No single ratio tells the whole story. Professional analysts look at these four ratios together, then add context: the company’s growth rate, debt load, industry norms, and the broader economic cycle. A low P/E in a declining industry is not the same as a low P/E in a growing one, and a high dividend yield is only attractive if the payout is sustainable.
Each ratio on this page follows a simple formula. Once you know the four inputs — share price, earnings per share, book value per share, and annual dividend per share — the math is straightforward:
Worked example 1: Suppose a stock trades at $150 per share, with earnings per share of $10, book value per share of $50, and an annual dividend of $3 per share. Applying the formulas: P/E = 150 ÷ 10 = 15.00; P/B = 150 ÷ 50 = 3.00; Dividend Yield = (3 ÷ 150) × 100 = 2.00%; Earnings Yield = (10 ÷ 150) × 100 = 6.67%. These are the default values loaded in the calculator above, so you can see the calculation live.
Worked example 2: Now consider a faster-growing stock trading at $80 per share with earnings per share of just $4. Its P/E ratio = 80 ÷ 4 = 20.00, meaning investors pay twenty dollars for each dollar of earnings — a 33% premium over the first example’s multiple. Its earnings yield is (4 ÷ 80) × 100 = 5.00%. Whether that premium is justified depends on the company’s growth prospects, which is why ratios are a starting point for research rather than a final verdict.
Scenario 1 — The income investor: Maria is 62 and building a retirement portfolio focused on reliable cash flow. She compares two utility stocks. Stock A trades at $60, pays a $2.40 annual dividend, and earns $4.00 per share. Stock B trades at $45, pays a $2.70 dividend, and earns $3.00 per share. Running the numbers, Stock A shows a 4.00% dividend yield and a P/E of 15.00, while Stock B shows a 6.00% yield but a P/E of 15.00 as well. The higher yield on Stock B looks tempting, but Maria digs deeper: Stock B’s payout ratio is 90% of earnings, leaving almost no cushion, while Stock A’s payout ratio is only 60%. She chooses Stock A for its safer dividend, using the ratios to frame the comparison rather than letting the headline yield decide for her.
Scenario 2 — The growth screener: David is 34 and hunts for growing companies at reasonable prices. He screens a watchlist of technology stocks and finds one trading at $120 with EPS of $6 (P/E 20.00, earnings yield 5.00%) and a book value per share of $20 (P/B 6.00). The P/B looks steep, but David knows book value understates asset-light software firms, so he weights the P/E and earnings yield more heavily. He compares the 5.00% earnings yield against the 4.00% yield on corporate bonds: the stock offers a modest premium for taking equity risk, and the company is growing earnings at 18% per year. The ratios don’t make the decision for him, but they give him a disciplined framework for comparing opportunities side by side.
Valuation ratios are just one part of investment planning. Continue your research with these related financial tools from Sigma Calculator:
This page provides a free Stock Ratios Calculator that computes the P/E ratio (price ÷ EPS), P/B ratio (price ÷ book value per share), dividend yield (dividend ÷ price × 100), and earnings yield (EPS ÷ price × 100) from four user inputs. It includes usage instructions, ratio definitions, formula derivations with worked examples, practical investor scenarios, common mistakes, related financial calculators, and FAQs. Content is educational and intended for screening purposes only — not investment advice. Last updated: October 8, 2026.
The price-to-earnings (P/E) ratio divides a stock’s share price by its earnings per share (EPS). It shows how much investors pay for each dollar of annual earnings. A P/E of 15 means the market values the company at 15 times its yearly profit. It is best used to compare companies within the same industry.
There is no universal ‘good’ P/E ratio because fair multiples vary by industry, growth rate, and market conditions. As a rough guide, the long-term average P/E of the broad U.S. market is around 15 to 16. Growth companies often trade above 25, while mature, slow-growing firms may trade below 12. Compare a stock’s P/E with its sector peers and its own history.
The P/E ratio compares price to earnings (a flow of profit over a year), while the P/B ratio compares price to book value (a snapshot of net assets). P/E reflects earning power and growth expectations; P/B reflects the market’s premium over accounting net worth. Value investors favor low P/B stocks, especially in asset-heavy sectors like banking.
Dividend yield is the annual dividend per share divided by the share price, multiplied by 100. For example, a $3 annual dividend on a $150 stock gives a 2.00% yield. It measures the cash income return from holding the stock, excluding price changes. Check that the payout is sustainable before chasing high yields.
Earnings yield is EPS divided by share price, expressed as a percentage — the inverse of the P/E ratio. A P/E of 15 equals an earnings yield of about 6.67%. It matters because it lets you compare a stock’s earnings return directly with bond yields and interest rates when deciding where to allocate capital.
Ratios are useful screening tools, but they cannot pick winners on their own. They summarize the market’s pricing of a company; they do not predict the future. Combine ratios with research into the business model, competitive position, debt levels, management quality, and growth prospects — and remember that this page is for education, not investment advice.
The P/E ratio is meaningless when earnings per share are zero or negative, because you cannot divide by zero and a negative multiple has no useful interpretation. This calculator shows a dash (—) in that case. For unprofitable companies, consider price-to-sales, price-to-cash-flow, or enterprise-value multiples instead.
Recalculate whenever the inputs change materially: after quarterly earnings releases (which update EPS and book value), after dividend announcements, or when the share price has moved significantly. Many investors review the ratios of holdings each quarter and re-screen watchlists monthly. The calculator above makes each refresh a matter of seconds.
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Last updated: October 8, 2026