Creating a PE Ratio Calculator with HTML and JavaScript
The Price-to-Earnings (PE) ratio is a fundamental financial metric used by investors to evaluate the valuation of a company’s stock. It helps in assessing whether a stock is overvalued or undervalued by comparing the company’s stock price to its earnings per share. Building a PE Ratio Calculator using HTML and JavaScript can provide a quick and efficient way to perform this calculation.
How the Calculator Works:
- Users are prompted to input the average share price and earnings per share in the respective input fields.
- Upon clicking the “Calculate PE Ratio” button, the
calculatePERatio()JavaScript function is triggered. - The function calculates the PE ratio by dividing the share price by the earnings per share.
- The calculated PE ratio is displayed on the page, or an error message is shown if the inputs are invalid.
Conclusion:
Creating a PE Ratio Calculator using HTML and JavaScript can be a valuable tool for investors and financial enthusiasts. It allows for quick and straightforward calculations, aiding in the evaluation of a company’s stock valuation. This example demonstrates how fundamental financial concepts can be brought to life through simple web-based tools.