Stock Ratios Calculator -

1. Enter Company Data:

All monetary values should be for the same period (e.g., TTM, latest fiscal year). Growth rate is prospective.

Current Market Price per Share:

Annual Dividend per Share:

Net Income (to Common Shareholders):

Total Revenue (Sales):

Weighted Average Shares Outstanding:

Total Shareholders’ Equity (Book Value):

Expected Annual Earnings Growth Rate:

Total Debt:

Total Assets:

Gross Profit:

Operating Income (EBIT):

2. Calculated Stock Ratios & Metrics:

Key Ratios:

Key Ratios Comparison

How to Use the Stock Ratios Calculator

This calculator computes a wide range of important financial ratios to help you analyze a company’s performance, valuation, profitability, and financial health. Enter the required financial data from a company’s reports (e.g., annual report, quarterly earnings) to get started.

1. Gather Company Data:

You’ll need the following information, typically found in a company’s financial statements (like the income statement, balance sheet, and cash flow statement) or from financial data providers:

Current Market Price per Share ($): The current trading price of one share of the company’s stock.
Annual Dividend per Share ($): The total dividends paid out per share over the last year.
Net Income (to Common Shareholders) ($): The company’s profit after all expenses and taxes, attributable to common stockholders. Usually found on the income statement.
Total Revenue (Sales) ($): The total amount of money earned by the company from its business operations. From the income statement.
Weighted Average Shares Outstanding: The average number of shares the company had outstanding during the reporting period. This is crucial for per-share calculations.
Total Shareholders’ Equity (Book Value) ($): The net worth of the company (Assets – Liabilities). Found on the balance sheet.
Expected Annual Earnings Growth Rate (%): The anticipated rate at which the company’s earnings per share are expected to grow annually over the next few years (often 1-5 years). This is an estimate, often provided by analysts or company guidance. Enter as a percentage (e.g., 10 for 10%).
Total Debt ($): The sum of all short-term and long-term debt obligations. From the balance sheet.
Total Assets ($): The sum of everything the company owns. From the balance sheet.
Gross Profit ($): Calculated as Total Revenue minus Cost of Goods Sold (COGS). From the income statement.
Operating Income (EBIT) ($): Earnings Before Interest and Taxes. Represents profit from core business operations. From the income statement.

Important: Ensure all monetary values (Net Income, Revenue, Equity, Debt, Assets, Gross Profit, Operating Income) are for the same reporting period (e.g., Trailing Twelve Months (TTM), latest fiscal year, or latest quarter annualized) for meaningful ratio calculations.

2. Enter Data into the Calculator:

Input each piece of information into the corresponding field in the “Enter Company Data” section.
Use only numbers; do not include currency symbols or commas in the input fields themselves (the dollar/percent signs are visual aids).

3. Calculate Ratios:

Click the “Calculate Ratios” button.

4. Understand the Results:

The calculator will display several categories of financial ratios and metrics in the “Key Ratios” grid, followed by a “Key Ratios Comparison” bar chart:

Per Share Metrics: EPS, BVPS, SPS.
Valuation Ratios: P/E, PEG, P/S, P/BV.
Dividend Ratios: Dividend Yield, Dividend Payout Ratio.
Profitability Ratios: ROE, ROA, Gross, Operating, and Net Profit Margins.
Financial Health Ratios: Debt-to-Equity.
Other Key Metrics: Market Capitalization.

The Bar Chart provides a visual comparison of selected key ratios.

Refer to the detailed article below the calculator for explanations of what each ratio means and how to interpret it.

5. Clearing Inputs:

Click “Clear All Inputs” to reset all fields for a new company analysis.

Error Handling & Notes:

The calculator will display “N/A” (Not Applicable) for ratios that cannot be calculated due to missing inputs or division by zero (e.g., P/E ratio if EPS is zero or negative).
An error message will appear if critical inputs are missing or invalid (e.g., non-numeric entries, negative shares outstanding).
Always double-check the source and period of your financial data for accuracy.

Decoding Company Performance: Your Ultimate Guide to the Stock Ratios Calculator

Unlocking Investment Insights: The Power of Stock Ratios

Investing in the stock market can feel like navigating a complex ocean. How do you determine if a company’s stock is a hidden gem, fairly valued, or potentially overpriced? How do you gauge its financial health and profitability? This is where financial ratio analysis comes into play. Stock ratios are powerful tools that distill vast amounts of financial data from a company’s statements into meaningful, comparable metrics. They act like a financial X-ray, allowing investors and analysts to look beyond the surface numbers and understand the underlying performance, valuation, and risk associated with a company.

Our Comprehensive Stock Ratios Calculator is designed to simplify this process, computing a wide array of crucial ratios to aid your investment research and financial understanding. This guide will delve into what these ratios mean and how you can use them.

What Are Stock Ratios?

Stock ratios are quantitative measures derived from a company’s financial statements (income statement, balance sheet, cash flow statement) and current stock price. They are used to evaluate various aspects of a company’s operating and financial performance, such as its profitability, liquidity, solvency, efficiency, and market value.

The key benefit of using ratios is that they allow for:

Standardization: Making it easier to compare companies of different sizes or in different industries (though industry-specific benchmarks are vital).
Trend Analysis: Tracking a company’s performance over time to identify improvements or deteriorations.
Identifying Strengths and Weaknesses: Highlighting areas where a company excels or lags.

Our calculator groups these ratios into logical categories to help you focus your analysis.

Context is King in Ratio Analysis

A single ratio in isolation rarely tells the whole story. It’s crucial to analyze ratios in context:

Industry Comparison: Ratios vary significantly across industries. A “good” P/E for a tech company might be very different from a utility.
Historical Trends: Is a company’s ratio improving or worsening over time?
Overall Economic Environment: Broader market conditions can influence company performance and ratios.

Key Categories & Ratios Explained:

I. Per Share Metrics

These metrics break down company-wide figures to a per-share basis, making them relatable to the stock price.

Earnings Per Share (EPS)
- Formula: (Net Income - Preferred Dividends) / Weighted Average Shares Outstanding
- What it means: The portion of a company’s profit allocated to each outstanding share of common stock. It’s a key indicator of profitability.
- Interpretation: Higher EPS generally indicates greater profitability and a stronger ability to pay dividends or reinvest in the business. Growing EPS over time is a positive sign.
Book Value Per Share (BVPS)
- Formula: Total Shareholders' Equity / Weighted Average Shares Outstanding
- What it means: The per-share value of the company based on its equity as reported on the balance sheet. It’s essentially the net asset value per share.
- Interpretation: BVPS can indicate a baseline value. If the market price is below BVPS, the stock might be undervalued, though this is more relevant for asset-heavy industries.
Sales Per Share (SPS)
- Formula: Total Revenue / Weighted Average Shares Outstanding
- What it means: The amount of revenue generated for each share of stock.
- Interpretation: Growing SPS can indicate increasing sales efficiency or market penetration. It’s a component of the Price/Sales ratio.

II. Valuation Ratios

These ratios help determine if a stock is overvalued, undervalued, or fairly priced compared to its earnings, sales, book value, or growth prospects.

Price/Earnings (P/E) Ratio
- Formula: Current Market Price per Share / Earnings Per Share (EPS)
- What it means: How much investors are willing to pay for each dollar of a company’s earnings. It reflects market expectations about future earnings growth.
- Interpretation: A high P/E can suggest high growth expectations or overvaluation. A low P/E might indicate undervaluation or potential problems. Compare with industry peers and historical levels. Not meaningful if EPS is zero or negative.
Price/Earnings to Growth (PEG) Ratio
- Formula: (P/E Ratio) / Expected Annual Earnings Growth Rate (%) (Growth rate as a whole number, e.g., 10 for 10%)
- What it means: A refinement of the P/E ratio that factors in earnings growth.
- Interpretation: A PEG ratio around 1 is often considered to indicate a fair valuation. Below 1 might suggest undervaluation, while above 1 could mean overvaluation, especially if significantly higher. This ratio attempts to normalize P/E for growth.
Price/Sales (P/S) Ratio
- Formula: Current Market Price per Share / Sales Per Share (or Market Capitalization / Total Revenue)
- What it means: Compares the stock price to the company’s revenue per share.
- Interpretation: Useful for companies with no current earnings (e.g., growth-stage tech companies) or cyclical businesses. A lower P/S might indicate undervaluation. Varies widely by industry.
Price/Book Value (P/BV or P/B) Ratio
- Formula: Current Market Price per Share / Book Value Per Share (BVPS)
- What it means: Compares the market’s valuation of the company to its book value of equity.
- Interpretation: A P/BV below 1 could mean the stock is undervalued or the company has significant intangible assets not reflected in book value. Higher P/BV ratios are common for companies with strong ROE or significant intangible assets (brand, patents).

III. Dividend Ratios

For income-focused investors, these ratios assess the return from dividends.

Dividend Yield (%)
- Formula: (Annual Dividend Per Share / Current Market Price per Share) x 100
- What it means: The annual return an investor receives from dividends, expressed as a percentage of the stock’s current price.
- Interpretation: Higher yield is attractive for income, but ensure it’s sustainable and not due to a falling stock price. Compare with peers and historical yield.
Dividend Payout Ratio (%)
- Formula: (Annual Dividend Per Share / Earnings Per Share) x 100
- What it means: The proportion of earnings paid out to shareholders as dividends.
- Interpretation: A very high payout ratio (e.g., >80-90%) might indicate less room for dividend growth or that dividends could be cut if earnings fall. Growth companies often have low or zero payout ratios as they reinvest earnings. Mature companies often have higher ratios. A ratio over 100% means the company is paying out more than it earns, which is unsustainable.

IV. Profitability Ratios

These ratios measure a company’s ability to generate profits from its sales and assets.

Return on Equity (ROE %)
- Formula: (Net Income / Average Total Shareholders' Equity) x 100 (Our calculator uses end-of-period equity for simplicity if average is not readily available from user input).
- What it means: How effectively a company uses shareholders’ investments to generate profit.
- Interpretation: A higher ROE generally indicates better performance. Often compared to the company’s cost of equity or industry averages. Consistently high ROE is desirable.
Return on Assets (ROA %)
- Formula: (Net Income / Average Total Assets) x 100 (Our calculator uses end-of-period assets).
- What it means: How efficiently a company uses its assets to generate profit.
- Interpretation: A higher ROA indicates more efficient use of assets. Varies significantly by industry (e.g., asset-heavy vs. asset-light businesses).
Gross Profit Margin (%)
- Formula: (Gross Profit / Total Revenue) x 100
- What it means: The percentage of revenue remaining after accounting for the Cost of Goods Sold (COGS). It reflects production efficiency and pricing power.
- Interpretation: A higher gross margin is generally better. Stable or increasing margins are positive signs.
Operating Profit Margin (%)
- Formula: (Operating Income (EBIT) / Total Revenue) x 100
- What it means: The percentage of revenue remaining after covering COGS and operating expenses (like R&D, SG&A). It shows profitability from core operations.
- Interpretation: A higher operating margin indicates better operational efficiency.
Net Profit Margin (%)
- Formula: (Net Income / Total Revenue) x 100
- What it means: The percentage of revenue that translates into bottom-line profit after all expenses, including interest and taxes.
- Interpretation: A key indicator of overall profitability. Higher is better.

V. Financial Health Ratios

These ratios assess a company’s financial stability and ability to meet its obligations.

Debt-to-Equity (D/E) Ratio
- Formula: Total Debt / Total Shareholders' Equity
- What it means: Measures the company’s financial leverage, indicating how much debt it uses to finance its assets relative to the value of shareholders’ equity.
- Interpretation: A high D/E ratio can indicate higher risk, as the company relies more on borrowing. However, optimal D/E varies by industry. Some debt can enhance returns (via leverage) if used wisely.

VI. Other Key Metrics

Market Capitalization ($)
- Formula: Current Market Price per Share x Weighted Average Shares Outstanding
- What it means: The total market value of a company’s outstanding shares. It represents the “size” of the company in market terms.
- Interpretation: Used to classify companies (e.g., large-cap, mid-cap, small-cap) and as a component in some other calculations (like P/S if using total revenue).

“Risk comes from not knowing what you’re doing.” – Warren Buffett. Financial ratios help you know more about what a company is doing.

Limitations of Stock Ratio Analysis

While incredibly useful, ratio analysis has its limitations:

Historical Data: Ratios are based on past performance, which doesn’t guarantee future results.
Accounting Methods: Different accounting practices can distort comparisons between companies.
One-Time Events: Unusual gains or losses can skew ratios for a particular period.
Industry Differences: As mentioned, what’s “good” for one industry can be “bad” for another.
Not a Complete Picture: Ratios don’t capture qualitative factors like management quality, brand strength, competitive advantages, or macroeconomic impacts.

Therefore, ratio analysis should be one part of a broader investment research process, not the sole basis for a decision.

Conclusion: Making Informed Investment Decisions

Stock ratios are indispensable tools for any investor seeking to understand a company’s financial standing and market valuation. By breaking down complex financial statements into digestible metrics, they offer valuable insights into profitability, efficiency, solvency, and growth potential. Our Comprehensive Stock Ratios Calculator aims to empower you by making these calculations accessible and providing a framework for interpretation. Remember to always use ratios in context, compare them against industry peers and historical trends, and combine this quantitative analysis with qualitative research for a well-rounded investment strategy. Happy analyzing!