Share price divided by earnings per share.... more on: PE ratio

The price-to-earnings ratio (PE ratio) is a tool that helps investors evaluate a company. Calculate this ratio by dividing the price of one share of a company's stock by the company's earnings per share over a 12-month period.

Price-Earnings Ratio, calculated by dividing the share price by the company's latest available earnings per share (EPS). There are several variants to this calculation including Diluted PE Ratio, PE Ratio before Abnormal Items etc. It is commonly used as a rule of thumb to determine whether or not a company's shares are reasonably priced by the market.

See Analysis â€“ Price-Earnings (P/E) ratio (The Investment FAQ, USA).

The Price Earnings ratio is one of the most commonly used measures of value in financial circles. It expresses the value in terms of a multiple of profits. For any company quoted on the Stock Exchange this figure can be easily calculated and is published daily in the Financial Times.

An equation which gives you a very rough estimate as to how much confidence there is in a company's shares (the higher it is the more confidence). The equation is: current share price multiplied by earnings and divided by the number of shares . 'Earnings' means the last published net profit of the company.

Abbreviation for Price Earnings Ratio.

A relative measure of the price of a company's shares, which also indicates the number of years required to equal the current share price.

Price - Earnings ratio. A companyâ€™s share price divided by its earnings per share