Stock Market Ratios Calculator
Analyze stocks like a professional with these essential financial metrics
Investment Disclaimer: This tool provides financial calculations for educational purposes only. It does not constitute investment advice. Past performance is not indicative of future results. Always consult with a qualified financial advisor before making investment decisions.
Tip: Fill in the available data and we'll calculate all applicable ratios automatically.
Stock Information
Company Financials
Ratio Analysis Results
Valuation Ratios
Price-to-Earnings (P/E):
Forward P/E:
Price-to-Book (P/B):
Price-to-Sales (P/S):
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Profitability Ratios
Return on Equity (ROE):
Return on Assets (ROA):
Net Profit Margin:
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Dividend Ratios
Dividend Yield:
Payout Ratio:
Dividend Coverage:
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Leverage Ratios
Debt-to-Equity:
Equity Multiplier:
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Quick Interpretation
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Understanding Stock Market Ratios
Valuation Ratios
- P/E Ratio: Compares stock price to earnings. Lower may indicate undervaluation, but varies by industry.
- P/B Ratio: Compares market value to book value. Values under 1 may suggest undervaluation.
- P/S Ratio: Useful for companies with no earnings. Lower ratios generally preferred.
Profitability Ratios
- ROE: Measures profit generated with shareholders' money. 15%+ generally good.
- ROA: Shows how efficiently assets generate profit. Compare to industry averages.
- Profit Margin: What % of revenue becomes profit. Higher is better.
Dividend Ratios
- Dividend Yield: Annual dividend relative to share price. High yields can be risky.
- Payout Ratio: % of earnings paid as dividends. Over 100% is unsustainable.
- Coverage Ratio: How easily dividends are covered by earnings. Higher is safer.
Leverage Ratios
- Debt-to-Equity: Compares debt to shareholders' equity. Varies by industry.
- Equity Multiplier: Measures financial leverage. Higher means more debt financing.
Analyst Tip: No single ratio tells the whole story. Always analyze multiple metrics together and compare to industry peers for proper context.
Industry Benchmark Ratios
| Industry | Avg P/E | Avg P/B | Avg ROE | Avg Debt/Equity |
|---|---|---|---|---|
| Technology | 28.5 | 6.2 | 18% | 0.45 |
| Healthcare | 22.1 | 4.8 | 15% | 0.60 |
| Financial Services | 14.3 | 1.2 | 12% | 2.10 |
| Consumer Staples | 19.7 | 5.5 | 22% | 0.75 |
| Utilities | 17.2 | 1.8 | 10% | 1.45 |
*Data represents approximate industry averages as of recent market data. Actual ratios vary by company and market conditions.
Frequently Asked Questions
What's considered a "good" P/E ratio?
The "good" P/E ratio varies by industry and market conditions. Historically, the S&P 500 average is around 15-20. Growth industries (like tech) often have higher P/Es (20-30+), while value sectors (like banks) may have lower P/Es (10-15). Compare to industry peers for context.
Why is ROE important for investors?
Return on Equity (ROE) measures how effectively management uses shareholders' capital to generate profits. Consistently high ROE (15%+) often indicates competitive advantages and efficient management. However, very high ROE can sometimes result from excessive debt, so examine alongside leverage ratios.
How do I interpret a negative P/E ratio?
A negative P/E means the company has negative earnings (is losing money). This isn't necessarily bad for growth companies investing heavily in expansion, but requires careful analysis of cash flows and growth prospects. Compare to similar growth-stage companies in the industry.
What's a safe dividend payout ratio?
Generally, payout ratios below 60% are considered sustainable. Above 80% may indicate the dividend is at risk if earnings decline. However, REITs and utilities often have higher payout ratios (up to 90%) due to their business models. Always check cash flow coverage as well.
How often should I check these ratios for my investments?
For long-term investors, quarterly (with earnings reports) is sufficient unless significant news affects the company. Compare ratios year-over-year to spot trends. Short-term traders may monitor more frequently, especially around earnings season or major announcements.