The P/E ratio game is a free quiz that helps you practice one of the most common numbers in investing. You get a made-up share price and earnings per share, and you work out the answer. There is no sign-up and no pressure. You can play as many times as you like.
What the P/E Price Check game is
P/E Price Check is a short quiz with ten questions. Every question uses made-up numbers. None of them are real prices or real companies. That keeps the focus on the skill and not on the news.
P/E stands for price to earnings. It compares what a share costs with what the company earns for each share in a year. The formula is price divided by earnings per share, which is called EPS. If a share costs $50 and EPS is $5, the P/E is 10. You can look up any new word in our glossary.
Why does this matter? A share price alone says little. A $200 share is not costly just because the number is big, and a $5 share is not cheap just because the number is small. P/E puts price and earnings side by side so you can compare in a fair way. The game gives you a lot of reps with that idea.
How to play the P/E ratio game
The steps are simple.
- Read the question and the numbers in it.
- Pick one of the four answers.
- Read the short explanation that appears. It shows the math.
- Move to the next question until you finish all ten.
Take your time. A wrong answer is not a failure. It is a chance to see the math once more. The explanation is the most useful part of every question.
What each type of question teaches
The quiz mixes a few kinds of questions. Each one builds a different skill.
Plain P/E math
These give you a price and an EPS. For example, a share costs $90 and EPS is $3. The answer is 30, because $90 divided by $3 is 30. This is the base skill. Everything else builds on it.
Small numbers
Sometimes EPS is under a dollar. A share costs $10 and EPS is $0.50. The answer is 20, because $10 divided by $0.50 is 20. The formula does not change. Only the numbers look different.
Comparing two companies
Company A costs $60 with EPS of $3. Company B costs $45 with EPS of $3. A has a P/E of 20 and B has a P/E of 15. By P/E, Company B looks cheaper. A higher share price does not by itself make a company costly. You must compare the price with earnings.
Finding EPS first
Some questions give total earnings and the number of shares. A company earns $10 million and has 2 million shares. EPS is $5. If the price is $40, the P/E is 8. This teaches you that EPS is earnings divided by shares.
Working backward
If the P/E is 25 and EPS is $4, the price is 25 times $4, which is $100. This shows that the formula works in both directions.
What a P/E tells you
A P/E of 20 means investors pay $20 for each $1 of yearly earnings. A high P/E often means investors expect growth. It does not prove a bargain, and it does not prove a problem.
Reading a P/E with care
A few questions ask how to read a result. Say one company has a P/E of 12 and another has a P/E of 40. The first costs less for each $1 of earnings. That is all the number says. It does not say which company is better run, safer or more likely to grow. Good learners treat P/E as one clue and keep asking more questions.
Another point to remember is that EPS can change from year to year. A P/E built on last year’s earnings may look different next year. The game keeps this simple by using one fixed set of numbers in each question.
Tips for scoring higher
- Always write the formula first: price divided by EPS.
- Check that you are dividing the right way round. Price goes on top.
- If the question gives total earnings, find EPS before anything else.
- When comparing two companies, work out both P/E numbers. Do not guess from the price alone.
- Use easy checks. If the P/E is 10 and EPS is $5, the price should be $50.
- Read the explanation even when you are right. You may find a quicker way.
- Round numbers help. For 120 divided by 8, think of 8 times 15, which is 120.
- Slow down on questions with words like cheaper or higher. Those ask you to compare, not just compute.
How to use the game to learn
Play once to see where you stand. Then play again a day later. Repetition is how the formula sticks. Aim to answer without a calculator before you check your work.
It also helps to keep a small notes page. After each round, write down any question you missed and the formula behind it. Review that page before the next round. In a week or two you will likely see the mistakes shrink. Your score matters less than how well you understand each step.
When the quiz feels easy, try our P/E ratio calculator with your own made-up numbers. You can also browse the full set of calculators for other basics.
If you like quizzes, try Stockvert and Stock Jeopardy too. They cover other parts of investing in the same friendly way. New to all of this? Our free starter guide is a good place to begin.
Common questions
Is a low P/E always better?
No. A low P/E can mean a company is priced well. It can also mean investors expect earnings to fall. A P/E is one clue, not a verdict.
Is a high P/E always bad?
No. Some companies grow fast, and investors may pay more for that growth. The number alone does not tell you the whole story.
Are the numbers in the game real?
No. Every price and EPS figure is made up for practice. The game does not name real companies or give real prices.
Do I need math skills to play?
You only need to divide and multiply. The explanations show each step, so you can learn as you go.
Does the game tell me what to buy?
No. It teaches how the numbers work. It never tells you to buy or sell anything.
The best way to get good with the P/E ratio game is to play often and read every explanation. Small, steady practice builds real confidence with price and earnings. You can start right now on the P/E Price Check page.
For free, neutral basics from the government, the SEC runs Investor.gov.
Positive Stocks is for education only. It is not investment advice. Investing involves risk, including loss of money. Do your own research and speak with a licensed professional.
