Moneyzine
/Investment Guides /Market Ratios Calculator

Market Ratios Calculator

Moneyzine Editor
Author: 
Moneyzine Editor
2 mins
October 4th, 2023
Advertiser Disclosure

This calculator provides the user with four of the more common market ratios. Using information such as the current market price per share, dividends per share, earnings growth rate and EPS data; the calculator provides the price to earnings, PEG ratio and dividend yield.

Calculator Definitions

The variables used in our online calculator are defined in detail below, including how to interpret the results.

Current Market Price ($ / Share)

This is the current market price for each share of the company's stock.

Earnings per Share (ttm) ($)

This is the earnings per share stated on a trailing twelve months (ttm) basis. This would be considered a historical measure of earnings.

Earnings per Share Growth (%)

This is the projected growth in earnings per share. Normally, the earnings per share growth rate is calculated using data for the prior 12 months, however, the analyst should decide if this value will apply to the next twelve months too.

Dividends per Share ($)

This is the dividends per share, stated on a historical basis. This value will be used to calculate the dividend yield.

Price to Earnings (ttm)

Also known as the P/E ratio, this first metric tells the analyst the cost to acquire $1.00 of the company's earnings. This measure is the P/E for the trailing twelve months (ttm); therefore, this is a historical account of this ratio.

Forward Price to Earnings

This next measure of price to earnings uses a forecast over the next twelve months, thereby providing the analyst with a forward-looking metric.

PEG Ratio

Relatively high P/E ratios are usually justified by projections of a high earnings growth rate. The price to earnings growth ratio, or PEG ratio, corrects the P/E for this growth rate. The calculation of a PEG ratio is such that a stock with a P/E of 15.0 and an earnings growth rate of 15.0% would have a PEG of 1.00. When comparing the values for two companies, the one with the lower PEG ratio is considered the better value.

Dividend Yield

High dividend yields are important for investors seeking a steady source of income from their stocks. Essentially, these companies are returning a high proportion of earnings back to investors in the form of a dividend payment.


Market Ratios Calculator


Disclaimer: These online calculators are made available and meant to be used as a screening tool for the investor. The accuracy of these calculations is not guaranteed nor is its applicability to your individual circumstances. You should always obtain personal advice from qualified professionals.

Related Content

  • What Can Help You Meet Your Budget While Shopping for Important Items?
    Budgeting while ensuring you don't compromise on quality can seem daunting. Whether filling your pantry, updating your wardrobe, or keeping up with the latest tech, smart shopping strategies are crucial for keeping your finances in check.
    April 2nd, 2024
  • How to Make a Million Dollars in 10 Years
    Truthfully, this title should actually be “How to Make a Million Dollars in 10 Years Without Going Into Debt", but that is just getting a little too winded for my liking. It’s true though!
    March 26th, 2024
  • How to Apply Maslow’s Hierarchy to Your Money This Year
    You might vaguely remember your psychology teacher talking about Maslow. He pointed at a picture of a triangle as you nodded off in the back of the school room.
    March 27th, 2024
  • How to Tackle Multiple Savings Goals
    When there’s only so much money to go around, there are often multiple savings goals competing for your money. Think of the young professional who’d like to get a more reliable car, buy a house, and save for retirement. Or consider the young family that’s saving for college, retirement, and a bigger house.
    March 22nd, 2024
  • The Countdown to Early Retirement: 10 Expenses to Eliminate
    Dreaming of waving goodbye to the daily grind five years ahead of schedule? The road to early retirement is paved with more than good intentions; it requires a meticulously crafted strategy with surprising twists. It's not solely about what you should be doing—like diligently saving a portion of your income or investing wisely—but also about what you need to stop doing.
    March 22nd, 2024

Contributors

Moneyzine 2024. All Rights Reserved.