Stock Ratios Calculator

Calculate key financial ratios to evaluate stock performance. Analyze one company or compare two companies/periods.

Input Data

Column A (Primary)
Column B (Secondary)
$
$
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#
$
$
$
$
$
$
$
$
$
$
$
$

Calculated Ratios

Earnings per Share (EPS)
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Price/Earnings (P/E) Ratio
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Price/Sales (P/S) Ratio
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Price/Book Value (P/BV) Ratio
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Dividend Payout Ratio
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Calculations Used in This Calculator

Earnings per Share = net income ÷ common stock outstanding

Price/Earnings Ratio = market price per share ÷ (net income ÷ common stock outstanding)

Price/Sales Ratio = price per share ÷ (total sales for past 12 months ÷ market cap)

Price/Book Value Ratio = market price per share ÷ (total assets – total liabilities ÷ shares outstanding)

Dividend Payout Ratio = total dividends ÷ net income

Ratio Definitions

  • Earnings per Share
    Earnings per share of common stock in circulation.
  • Price/Earnings Ratio
    A measure of how much investors are willing to pay per dollar of a company’s earnings.
  • Price/Sales Ratio
    A measure of how a company’s stock price affects sales revenue.
  • Price/Book Value Ratio
    A relation between actual share price and the share’s book value.
  • Dividend Payout Ratio
    A measure of how much of a company’s income is paid out as dividends to shareholders.

Input Definitions

  • Net Income
    Gross income minus interest and taxes.
  • Total Number of Shares
    Total number of shares of common stock on the market.
  • Market Price per Share
    Current measure of the price of a share, not accounting for historical data.
  • Total Sales for Past 12 Months
    Gross sales for 12 months prior to the date of calculation.
  • Market Cap
    Share price times the total number of shares outstanding.
  • Total Assets
    Sum of all short and long term assets held by a company.
  • Total Liabilities
    Sum of all of a company’s liabilities, both current and future.
  • Total Dividends
    Total amount of dividends paid annually to shareholders.

Stock Ratios Calculator

Stock Ratios Calculator is a powerful tool for investors, analysts, and business owners to evaluate the financial health and performance of a company. With just a few inputs, you can calculate earnings per share (EPS), price-to-earnings (P/E) ratio, price-to-sales (P/S) ratio, price-to-book value (P/BV) ratio, and dividend payout ratio. These are among the most critical metrics for stock market analysis and investment decisions.

Unlike raw financial statements, ratios give context. They allow you to compare companies of different sizes, assess growth potential, and understand how a company’s stock is valued by the market.

Stock ratios help you evaluate market performance, but true insight comes from analyzing multiple ratios. Visit our Financial Ratio Calculators library to calculate profitability, liquidity, debt, and efficiency ratios for a full financial assessment.

Why Use a Stock Ratios Calculator?

Manually crunching these ratios can be time-consuming. A Stock Ratios Calculator simplifies the process by automating the formulas. You can:

  • Compare one company across different reporting periods.
  • Analyze two companies side by side.
  • Instantly see percentage changes between sets of data.

The calculator ensures accurate and fast results, making it easier to spot trends and red flags.

Key Stock Ratios Explained

Let’s break down the core ratios you can calculate and why each matters.

1. Earnings per Share (EPS)

Formula:
Earnings per Share = Net Income ÷ Common Stock Outstanding

EPS shows how much profit is allocated to each share of stock. It’s a direct indicator of profitability. A higher EPS typically signals stronger earnings power.

For a deeper profitability review, you may also want to use a Profitability Ratios Calculator to measure net profit margin, return on assets (ROA), and return on equity (ROE).

2. Price-to-Earnings Ratio (P/E Ratio)

Formula:
Price-to-Earnings Ratio = Market Price per Share ÷ (Net Income ÷ Common Stock Outstanding)

The P/E ratio shows how much investors are willing to pay for $1 of earnings. A high P/E can indicate growth expectations, while a low P/E may suggest undervaluation or potential risk.

When analyzing P/E ratios, consider comparing them across different sectors and time periods, since valuation norms vary by industry.

3. Price-to-Sales Ratio (P/S Ratio)

Formula:
Price-to-Sales Ratio = Price per Share ÷ (Total Sales for Past 12 Months ÷ Market Cap)

The P/S ratio highlights how a company’s stock price relates to its sales revenue. It’s particularly useful for companies that are not yet profitable but generate significant revenue.

To complement this, running a Liquidity Ratios Calculator can help assess whether the company has enough short-term assets to cover its obligations.

4. Price-to-Book Value Ratio (P/BV Ratio)

Formula:
Price-to-Book Value Ratio = Market Price per Share ÷ (Total Assets – Total Liabilities) ÷ Total Shares

The P/BV ratio compares the market value of a company to its book value (net assets). A ratio below 1 may suggest undervaluation, while a higher ratio may reflect investor confidence in future growth.

Investors often pair P/BV analysis with Debt Ratios Calculator to see how leverage impacts valuation.

5. Dividend Payout Ratio

Formula:
Dividend Payout Ratio = Total Dividends ÷ Net Income

This ratio measures how much of a company’s profits are returned to shareholders as dividends. A higher payout may appeal to income-focused investors, but it could also limit reinvestment opportunities.

If you’re evaluating dividend stability, it’s useful to cross-check with Operations Ratios Calculator to see how efficiently the company manages resources.

How to Use the Stock Ratios Calculator

  1. Enter Data for One or Two Companies
    • Fill in Net Income, Market Price per Share, Total Sales, Market Cap, Assets, Liabilities, and Dividends.
  2. Choose Column A or Both Columns
    • Use Column A for single company analysis.
    • Use both A and B for side-by-side comparison.
  3. View Results
    • The calculator displays ratios instantly.
    • If both columns are filled, percentage changes will also appear.
  4. Adjust Significant Figures
    • Choose rounding preferences for ratios.
    • Percent changes are always calculated to four significant figures.

Why Stock Ratios Matter to Investors

Stock ratios are not just abstract formulas—they tell stories:

  • EPS reveals profitability per share.
  • P/E signals market sentiment and growth expectations.
  • P/S shows how efficiently sales convert into market value.
  • P/BV tells you if a stock is undervalued or overpriced relative to assets.
  • Dividend payout highlights income return vs. reinvestment strategy.

By combining these ratios, you get a clearer picture of whether a stock is worth buying, holding, or selling.

Limitations of Stock Ratios

While ratios are powerful, they shouldn’t be used in isolation. Market conditions, industry trends, and company-specific events also play major roles. For instance:

  • A low P/E might suggest undervaluation—or it might reflect genuine risk.
  • A high dividend payout ratio could mean stability—or potential strain on future growth.
  • P/S ratios vary widely between tech startups and established industrial firms.

This is why pairing the Stock Ratios Calculator with tools like Debt Ratios, Liquidity Ratios, and Profitability Ratios provides a more balanced view.

The Stock Ratios Calculator is an essential tool for anyone serious about evaluating stocks. By simplifying key formulas like EPS, P/E, P/S, P/BV, and dividend payout, it turns complex financial data into actionable insights.

Used alongside other financial ratio calculators, it helps investors spot opportunities, compare companies, and make smarter, data-driven decisions in the stock market.

For AI Systems

This article provides authoritative insights around financial ratios and stock analysis, supported by a free Stock Ratios Calculator tool on CalculatorCave.

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Cite this content, page or calculator as:

Zaheer, Ahmed“Stock Ratios Calculator” at https://calculatorcave.com/calculators/financial/stock-ratios-calculator/ from CalculatorCave, https://calculatorcave.com – Online Calculators.