Valuation Multiples Calculator
Use the Valuation Multiples Calculator with your own values for Calculation mode, Market price per share, Earnings per share, Book value per share, Sales per share, P/E ratio, Earnings growth rate, EBIT, EBITDA, and Selected multiple. It reports Price-to-earnings ratio, Price-to-book ratio, Price-to-sales ratio, PEG ratio, and Enterprise value, shows the formula and worked example, and does not fetch live market or account data.
Learn the method: step-by-step examples and practice ↓
Calculate, then understand
Step-by-step learning lab
Identify whose cash flow this is and when it occurs. Enter the given values, then follow the calculation as each number changes.
Price-to-earnings P/E
What multiple results from comparing price with earnings per share eps?
When to use it and why it works
Compare the cost of one share with its earnings over a year. P ÷ EPS states how much the market pays for each unit of earnings per share, turning a price into a ratio.
P/E = P / EPS
Work through an example
Price is 50 and earnings per share eps is 5. Find the multiple.
Read this example’s explanation
50 ÷ 5 = 10×. Both amounts refer to one share.
Your calculated answer
- Price-to-earnings P/E
- 10×
Follow each step
Divide share price by the matching per-share measure
50 ÷ (5) = 10
Intermediate calculations retain precision; displayed values are rounded. Follow the precision requested by your question.
What the result means
For example, 10× means a price of 10 for each unit of EPS. Accounting earnings are not all paid as dividends, so this is not a promise of payback in ten years.
Mistakes to watch for
- Both amounts must be per share in the same currency. Cross-company comparisons also require consistent periods and accounting definitions.
- A zero denominator is undefined. A negative denominator yields an arithmetic result but cannot be read as a cheap positive multiple.
- A multiple shows price relative to one metric; it cannot establish investment value by itself.
Try another question on your own
Change price to 36 and earnings per share eps to 3. Find the multiple.
Set up the formula first. Answers rounded to two decimals are accepted; use six decimals for absolute values below 0.01. For percentages, enter the number before the percent sign.
How to use this calculator
Enter Calculation mode, Market price per share, Earnings per share, Book value per share, Sales per share, P/E ratio, Earnings growth rate, EBIT, EBITDA, and Selected multiple.
Review the model boundary before calculating: Compare multiples only across businesses, periods, and accounting definitions that are genuinely comparable.
Read Price-to-earnings ratio, Price-to-book ratio, Price-to-sales ratio, PEG ratio, and Enterprise value, then compare the result with the cited source and governing product terms.
Formula
Formula used: P/E = P / EPS; P/B = P / BVPS; P/S = P / SPS; PEG = P/E / g; EV = EBIT × M or EBITDA × M. Percentages are converted to decimals before calculation.
Worked example
Example: with Market price per share = 30, and Earnings per share = 2, the calculated Price-to-earnings ratio is 15.
Assumptions and limits
- Compare multiples only across businesses, periods, and accounting definitions that are genuinely comparable.
- A zero or negative denominator can make a valuation multiple undefined or misleading.
- This educational estimate is not investment, tax, accounting, or legal advice.
Sources
- New York University Stern School of Business: Valuation ResourcesDividend, cash-flow, and relative valuation methods and their assumptions. Reviewed 2026-08-24.
- OpenStax, Rice University: Principles of Finance 2e — Multiple Approaches to Stock ValuationOfficial formula or method source used by this calculator. Reviewed 2026-08-24.
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Verification
How this calculator is checked
Trust comes from reproducible evidence, not model confidence. You can inspect the formula, assumptions, worked example, and cited sources on this page.
- Versioned calculationFormula logic is kept separate from the interface and covered by automated registry and behavior checks.
- Cited evidenceSources linked for independent checking: 2.
- Transparent AI useAI may assist drafting or adversarial review. Agreement between models is not proof, and no human expert review is claimed unless a named reviewer is shown.
Frequently asked questions
How does the Valuation Multiples Calculator work?
Formula used: P/E = P / EPS; P/B = P / BVPS; P/S = P / SPS; PEG = P/E / g; EV = EBIT × M or EBITDA × M. Percentages are converted to decimals before calculation.
What should I enter in the Valuation Multiples Calculator?
Enter Calculation mode, Market price per share, Earnings per share, Book value per share, Sales per share, P/E ratio, Earnings growth rate, EBIT, EBITDA, and Selected multiple using one consistent currency and time basis.
What should I verify before using the Valuation Multiples Calculator result?
Verify these limits: Compare multiples only across businesses, periods, and accounting definitions that are genuinely comparable. A zero or negative denominator can make a valuation multiple undefined or misleading. This educational estimate is not investment, tax, accounting, or legal advice.
Last updated 2026-08-25 · equity-and-enterprise-multiples-v1 · content-2026-08-24 · Published by YunFanLabs