P/E Ratio Calculator

Price-to-earnings ratio and premium or discount to peers.

How the P/E Ratio Calculator works

The price-to-earnings (P/E) ratio shows how many rupees investors pay for each rupee of a company's yearly earnings. For an IPO, use the upper price band and the post-issue EPS from the RHP, then compare the result with listed peers in the same industry.

P/E Ratio Calculator formula

P/E = Price ÷ Earnings per share (EPS) · Earnings yield = EPS ÷ Price × 100

Results are estimates for illustration only and not financial advice.

How to use the P/E Ratio Calculator

Enter the share price, or the upper price band for an IPO.
Enter the earnings per share (EPS) from the results or the RHP.
Add the P/E of listed peers to see whether the price is at a premium or a discount.

P/E Ratio Calculator: FAQs

Is a lower P/E always better?

Not always. A low P/E can mean a stock is cheap, or that its earnings are expected to fall. Compare P/E with growth, return ratios and peers in the same industry.

Where do I find the EPS for an IPO?

The RHP shows EPS and the P/E of listed peers in its "Basis for Offer Price" section. Use the diluted, post-issue EPS for a fair comparison.

Is the P/E Ratio Calculator free to use?

Yes. The P/E Ratio Calculator on IPO Darbaar is free, needs no sign-up and works on mobile and desktop.

Is my data saved anywhere?

No. All calculations run in your browser; the numbers you enter are not sent to or stored on our servers.

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