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.
The variables used in our online calculator are defined in detail below, including how to interpret the results.
This is the current market price for each share of the company's stock.
This is the earnings per share stated on a trailing twelve months (ttm) basis. This would be considered a historical measure of earnings.
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.
This is the dividends per share, stated on a historical basis. This value will be used to calculate the dividend yield.
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.
This next measure of price to earnings uses a forecast over the next twelve months, thereby providing the analyst with a forward-looking metric.
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.
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.