P/E × Earnings: Price & Value Simulator
Change P/E or Earnings per Share (EPS) to see how they drive a stock’s price and market cap. This is a demo to teach the relationship between valuation and earnings power.
Educational Use Only: This simulator is for demonstration and educational purposes and is not a real-world valuation tool or investment advice.
It simplifies how price and earnings interact to show conceptually how changes in P/E or earnings affect valuation.
Real-world stock prices depend on many additional factors — growth, cash flow, balance sheets, interest rates, and investor sentiment.
Price per Share = EPS × P/E. Market Cap = Price × Shares Outstanding.
Calculated Price / Share
$0.00
Market Capitalization
$0
Earnings Power (EPS × Shares)
$0
With Margin of Safety
$0.00
The P/E is a **multiplier** on earnings: holding EPS constant, a higher P/E implies investors will pay more per dollar of earnings — raising price and market cap.
Price Sensitivity: Varying P/E (EPS fixed)
Price Sensitivity: Varying EPS (P/E fixed)
Disclaimer: This simulator is for demonstration and educational purposes only. It does not reflect real-world stock valuations or investment recommendations.
Use it to understand the *relationship* between earnings, P/E, and market value — not to estimate actual prices.