Definitions for

**"price to earnings ratio"****Related Terms:**Price/earnings ratio, Price-to-earnings ratio, P/e, P/e ratio, Price earnings ratio, Price-earnings ratio, Earnings yield, Price/earning ratio, Pe ratio, Dividend yield, Per, Price/sales ratio, Earnings per share, Peg ratio, Growth stocks, Total shareholder return, Growth stock, Price-to-sales ratio, Tsr, Multiple, Basic earnings per share, Income stocks, Return on common equity, Diluted earnings per share, Peg, Dividend payout ratio, Income stock, Price/book ratio, Value stock, Indicated yield, Price-to-book ratio, Payout ratio, Value stocks, Primary earnings per share, Dividend cover, Dividend reinvestment plan, Price to book ratio, Dividend per share, Dividends per share, Book value per share, Growth, Dilution, Dividend reinvestment, Earnings momentum, Ex-dividend date, Blue chips, P/b ratio, Dividend reinvestment plans, Capitalization, Stock turnover

The most common measure of how expensive a stock is. The P/E ratio is equal...

The P/E Ratio is calculated by dividing the most recent close price of a stock by its most recent reported Earnings Per Share (EPS) value.

the current share price divided by adjusted earnings per share.

Used as a measurement of the value of a stock and a method for comparing stocks within a similar industry. Calculated by dividing the current price of common shares by the company's earnings per share for a 12-month period.

is arrived at by dividing the market value of a company by net income of this company. It indicates the number of years a company would require to generate net income sufficient to repay the investor at the current price and level of income.

A common measurement of stock valuation that is calculated by dividing the current price of a company's common shares by the last 12 months earnings per share. PE Ratios provide a rudimentary understanding of how a stock is trading relative to the general market and to other companies within the same industry.

The Price to Earnings (PE) Ratio is a company's Last Closing Price divided by the current year estimate of earnings per share (EPS).

Price of a stock divided by its earnings per share. The P/E ratio may either use the reported earnings from the latest year (called a trailing P/E ratio) or employ an analyst's forecast of next year's earnings (called a forward P/E ratio). For instance, a stock selling for $20 a share that earned $1 last year has a trailing P/E ratio of 20x. If the same stock has projected earnings of $2 next year, it will have a forward P/E ratio of 10x. The price to earnings ratio, also known as the multiple, gives investors an idea of how much they are paying for a company's earning power.

This ratio is calculated by dividing the current Price by the sum of the Primary Earnings Per Share from continuing operations BEFORE Extraordinary Items and Accounting Changes over the relevant fiscal period.

A method of valuing stocks, calculated by dividing the closing price of a company's stock by its annual earnings per share. Growth stocks tend to haveÂ high P/E ratios compared with income stocks.

A stock's price divided by its earnings per share, which indicates how much investors are paying for a company's earning power.

A method of valuing shares, calculated by dividing the closing price of a company's shares by its annual earnings per share. Growth shares tend to have a high P/E ratios compared to income shares.

Current stock price divided by most recent quarter's earnings per share multiplied by 4 (to annualize).

An accounting ratio defined as the share price divided by the earnings per share. Broadly speaking, the higher a company’s P/E ratio, the more expensive the company and the more highly rated it is.