price earnings ratio

price-earnings ratio

[prahys-ur-ningz]
noun
the current price of a share of common stock divided by earnings per share over a 12-month period, often used in stock evaluation. Abbreviation: p/e
Also called price-earnings multiple.


Origin:
1960–65

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World English Dictionary
price-earnings ratio
 
n
P/E ratio the ratio of the price of a share on a stock exchange to the earnings per share, used as a measure of a company's future profitability

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