P/E valuation

Cheap or expensive?

Estimate a stock's fair value from its earnings and the P/E multiple you think it deserves, then compare to the price. Learn the idea in valuing a stock. Valuation rests on assumptions about the future — treat it as a starting point.

P/E valuation

A rough read on whether a price looks cheap or expensive versus its earnings. Fair value = earnings per share × the P/E you think it deserves. It's a starting point, not a verdict.

Fair value$50

Fair value is 11% above the price — looks cheap on your assumptions.

Current P/E18.0×
Earnings yield5.6%

Educational only — not financial advice. A P/E is only meaningful in context (the company's history, its industry, and its growth); a "fair value" is your assumption, not a fact.