Stock Valuation Calculator (P/E)

The P/E (Price-to-Earnings) ratio is the current stock price divided by earnings per share (EPS). It tells you how much investors pay for each unit of earnings. A high P/E may indicate overvaluation or high growth expectations.

Intrinsic value = EPS x target P/E. If EPS is 5 PLN and the sector P/E is 15, the fair value is 75 PLN. Comparing this to the market price tells you whether the stock is cheap or expensive.

PEG (Price/Earnings to Growth) divides P/E by the annual EPS growth rate in percent. PEG below 1 is often a signal of undervaluation, near 1 means fair value, and above 1 may indicate overvaluation. Use it as a guide, not an oracle.

EPS (Earnings Per Share) is net profit divided by the number of shares outstanding. You can find it in annual or quarterly financial reports, on stock exchange websites, or financial portals such as Yahoo Finance, Bloomberg, or Investing.com.

Choose a target P/E based on: the company's historical average P/E, the sector median P/E, or the broad market P/E. Comparing multiple sources reduces bias — the market, sector, and history can all suggest different levels.

If intrinsic value is above the market price, the stock trades at a discount — a potential buying opportunity. If market price exceeds intrinsic value, the stock trades at a premium. A range of +/-10% is treated as the fair value zone.

Dividend yield is the annual dividend per share divided by the current price, expressed as a percentage. High yields increase total return for the investor and often signal financial stability. In P/E valuation, dividend yield is a complementary metric.

The P/E method works best for mature companies with predictable earnings. It is not suitable for loss-making companies (negative EPS), early-stage startups, or highly cyclical companies. In those cases consider P/S, EV/EBITDA, or DCF methods.

Rising inflation typically pushes interest rates higher and lowers fundamental valuations. With a higher cost of capital, the fair P/E multiple may compress — even with unchanged EPS, the fair price of a stock can fall.

No. The calculator is for educational purposes only. P/E valuation is a simplified tool that does not account for company-specific risk, debt levels, or external events. Always consult a licensed financial adviser before making investment decisions.