MarketXLS

P/E Ratio (TTM)

Returns the Price to Earnings ratio, the most widely used stock valuation metric. P/E shows how much investors are willing to pay per dollar of earnings.

P/E Formula

P/E Ratio = Stock Price / Earnings Per Share

Understanding P/E

P/E Range General Interpretation
< 10 Potentially undervalued or troubled
10-20 Fair value for mature companies
20-30 Growth premium
> 30 High growth expectations

Types of P/E

Type Description
Trailing (TTM) Based on last 12 months earnings (this function)
Forward Based on estimated future earnings
Shiller CAPE Cyclically adjusted, 10-year average

Industry Comparison

P/E varies significantly by industry:

  • Tech: 25-50+
  • Utilities: 15-20
  • Banks: 8-15
  • Retail: 15-25

Parameters

Parameter Description
Symbol Stock ticker symbol

Syntax

=PERatio(Symbol)
Excel Desktop (Windows)

Returns

number

Price to Earnings ratio

Examples

=PERatio("AAPL")
P/E ratio for Apple
=PERatio("MSFT")
P/E ratio for Microsoft
=PERatio("JPM")
P/E ratio for JPMorgan
=PERatio("WMT")
P/E ratio for Walmart
=PERatio(A1)
Symbol from cell reference

When to Use

  • Quick stock valuation assessment
  • Compare valuations within an industry
  • Screen for undervalued stocks
  • Determine if a stock is expensive
  • Fundamental analysis

When NOT to Use

Scenario Use Instead
Company has negative earnings PricePerSales()
Need growth-adjusted valuation PEGRatio()
Need book value-based PricePerBook()
Comparing across industries PEG or industry-specific metrics

Common Issues & FAQ

Why is P/E returning "NA" or negative?

P/E is undefined for companies with:

  • Negative earnings (unprofitable)
  • Zero earnings Use PricePerSales() for unprofitable companies.

Why compare P/E within industries?

Different industries have different typical P/E ranges due to growth rates, capital intensity, and risk profiles.

Is this forward or trailing P/E?

This returns TTM (Trailing Twelve Months) P/E based on actual reported earnings.

Excel Templates Using P/E Ratio (TTM)

These ready-made MarketXLS templates call PERatio() in their worksheet formulas. Open one to see the function working inside a complete model.

Related Formulas

More MarketXLS Key Ratios formulas you can use in the same worksheet:

See PERatio used in a complete workbook: Bloomberg Alternative: The Best Excel-Native Financial Data Platform in 2026

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MarketXLS Excel Add-in Tutorial - How to Use P/E Ratio (TTM) and Other Financial Formulas
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