How accurate is the P/E Ratio?

The P/E Ratio is implemented from the Startup Valuation textbook (Chapter 5: Market Comparables) and is open source and auditable. All formulas are traceable to the source.

Is the P/E Ratio calculator free?

Yes. All 27 calculators and the MCP API are free and open source (MIT licensed).

P/E Ratio

FoundationChapter 5: Market ComparablesFormula 5

Open Source · MIT

Price-to-Earnings ratio: Market Capitalization ÷ Net Income.

P/E Ratio

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