price-earnings ratio
[
prahys
-
ur
-ningz]
/ˈpraɪsˈɜr nɪŋz/
noun
1.
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
Examples from the web for
price-earnings ratio
Equity valuations, as measured by the
price-earnings ratio
, tend to be highest when inflation is low and stable.
Some devise their own abstruse measures of valuation to supplement such conventional measures as the
price-earnings ratio
.
British Dictionary definitions for
price-earnings ratio
price-earnings ratio
noun
1.
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
P/E ratio