price/earnings ratio. The most common measure of how expensive a stock is. The...
The price of a share of a stock divided by earnings per share, usually calculated using the latest year's earnings. The p/e ratio is also called the multiple.
A measurement of a companyâ€(tm)s rating, calculated by dividing the share price by the annual earnings per share. A high P/E ratio means the company is highly-rated by the stock market, suggesting that investors think its prospects are good.
The relationship between the price of a stock and its earnings per or P/E Ratio share. The P/E ratio is calculated by dividing the stock price by the EPS figure. A stock selling at $45 with annual EPS of $3.00 has a price/earnings ratio of 15.
(P/E, P/E multiple) Ratio that is used in determining the value of a stock. It is calculated by taking the latest closing price of a stock (share) and dividing it by the earnings per share for the most recent twelve month period. A stock selling at $60 per share with earnings of 3% ($3.00) per share has a PE of 20.
Earnings are fundamental to a company's prospects and to long-term growth. They are the company's basic take - what it has made, after tax. So an essential tool to the analyst of companies' shares, is the price/earnings ratio, or P/E - what a company earns relative to its share price. If the P/E is eight times earnings. If a company's shares currently stand at 600 p and its earnings are 56p per share in issue, then its P/E is 10.71 (600/56 = 10.71). Those between seven and 15 are in what is generally considered the normal range, in the UK at least. For a particular company P/Es give an indication of whether the shares may be overvalued or undervalued in comparison with other companies.
A commonly used measure of a company`s stock price relative to its earnings per share. Specifically, it is a company`s stock price divided by its earnings per share over the past 12 months. For instance, a company with a stock price o f $10 and earnings-per-share of $1 has a 10 PE ($10 divided by $1). The higher a stock`s PE, the more expensive the stock is relative to its earnings.
A ratio calculated by dividing a stocks current total capitalization by it's trailing twelve month net earnings.Useful for comparing relative values of different stocks. Provides an easy measure of how much you would pay each .00 of net earnings.
The ratio of the market price of a share to the company's earnings. (profits)
The most common measure of how expensive a stock is. Equal to a stock's capitalization divided by its after-tax earnings over a 12-month period, usually the trailing period but occasionally the current or forward period. The value is the same whether the calculation is done for the whole company or on a per- share basis. Equivalently, the cost an investor in a given stock must pay per dollar of current annual earnings. also called earnings multiple. see also ratio, price to book ratio, earnings yield, forward P/E, trailing P/E, PEG ratio, high-flyer.
The current price of a security divided by the per-share earnings over the past year. In terms of a portfolio, it is the weighted average Price/Earnings Ratio of the securities held in the portfolio. The higher Price/Earnings Ratio, the higher the prospect for earnings growth in years to come.
This shows the number of times the price covers the earnings per share.
The most commonly used measure of value for both markets and individual stocks. It indicates how many times earnings an investor is willing to pay to own a stock or market index, therefore it is sometimes called the multiple. A trailing P/E is the current price divided by the latest fiscal years reported earnings per share. While a forward P/E uses an analysts forecast of next years earnings in the ratio.
the present market price of an ordinary share divided by the company's net earnings pet share for the past year.
The market price per ordinary share divided by earnings per share shows the number of years it would take to recoup an equity investment from its share of the attributable equity profit.
The price-earnings ratio indicates the market value of the shares related to the company's profitability. A high price-earnings ratio indicates that the market value is high compared to the profitability and vice versa. Price Earnings Ratio = Market Value per share / Profit per Share Investors and analysts will likely compare the price-earnings ratio of a company to the industry average. This comparison helps evaluate the company's shares. If the company ratio is higher than the average, the market is expecting that the company's profit will be higher than average. The price-earnings ratio is used by venture capitalists in evaluating business ventures and analyzing their attractiveness as an investment.
A financial ratio in which a company's Market Value is divided by its earnings.
P/E Ratio is the Market Value per Share divided by the Earnings per share (EPS) The price to earnings ratio compares the current stock price of a company with its earnings to see if a stock is over or under valued. It is calculated by dividing the stock's current price by the company's current annual earnings per share, usually from the last four quarters (the trailing P/E ratio), but sometimes from the estimates of the earnings expected in the next four quarters (the projected P/E ratio). Sometimes it even can consist of the sum of earnings over the last two actual quarters and the estimates of the next two quarters. The idea behind the P/E Ratio is that it is an expectation of the company's performance in the future. A company with a P/E higher than the market or industry average means the market is expecting big things over the next few months or years. It is useful to compare the P/E ratios of other companies in the same industry, or to the market in general, or against the company's own historical P/E Ratios. The P/E ratio is also sometimes referred to as the “multiple”.
A measure of the relative value of a company’s shares, calculated by dividing a share’s quoted price by the company’s earnings per share.
A share's price divided by its last published earnings per share. It is used as a measure of comparing a company's share value with others and as a valuation metric.
P/E ratio is calculated by dividing a stock's price by its current earnings per share. A high P/E suggests the market is optimistic about future prospects for the company.
Calculated by dividing a company's value by its earnings or pre-tax profit. It is a measurement of how highly a share is valued.
The earnings per share, or net profit of a company, multiplied by a market selected number or years, with that number divided by the number of shares of common stock outstanding.
The price per earnings ratio is calculated by taking the current price of a stock and dividing it by the earnings per share from the most recent 12-month period. A higher number resulting from this calculation indicates higher expectations for a stock, while the opposite is true as well.
The mid- price of a share divided by the earnings per share, provides a multiple of a company's market value to the profit it makes. For loss- making companies the measure is irrelevant.
The market value of a company's stock divided by net income.
A measurement that indicates a share's value in relation to its last 12 months' earnings expressed per share. One of the indicators used by investors to examine the potential worth a company and future value in buying shares in that company.
The measure to determine how the market is pricing the company's common stock. The price/earnings (P/E) ratio relates the company's earnings per share (EPS) to the market price of its stock.
The share price divided by earnings per share. This measures the number of years' earnings required to equal the current market value.
Theoretically measures the value of a stock by dividing the current price by its earnings per share over the last twelve months. more...
A ratio used by some investors to gauge the relative value of a security in light of current market conditions. Ratio = Market Price divided by Earnings per Share.
The share price of a common stock divided by its annual earnings. A stock selling for $30 that earned dividends of three dollars in the preceding year would have a P/E ratio of ten.
A measure of a company's valuation calculated as the stock price divided by the Earnings Per Share (EPS). Acronym: P/E.
The ratio of a stock's current price to its per-share earnings over the past year. For a portfolio, the ratio is the weighted average p/e of the stocks it holds.
Earnings per share alone mean absolutely nothing. In order to get a sense of how expensive or cheap a stock is, you have to look at those earnings relative to the stock price. To do this, most investors employ the price/earnings (P/E) ratio. The P/E ratio takes the stock price and divides it by the last four quarters' worth of earnings. If XYZ Corp. is currently trading at $15 a share with $1.00 of earnings per share (EPS), it would have a P/E of 15.$15 share price $1.00 in trailing EPS= 15 P/E
(P/E) - The price of a stock divided by its yearly earnings. A stock selling at $12 per share that earns $1 per share has a P/E of 12. A P/E is, in effect, a measure of investors' expectations for a stock's performance. Stocks with high P/Es are ones from which investors expect high future growth rates. Low P/Es imply that investors expect low growth. For a greater understanding of the implications of a P/E, please see the article, " The Deep Logic of PEG" on this web site.
The relationship between the selling price of a company's common stock to the company's annual profits per share.
the price of a share of stock divided by earnings per share for a 12-month period; either the last fiscal year, the preceding four quarters (trailing earnings), or projections for future years (forward earnings); indicates the value investors place on a company's earnings.
The current market price of a share of stock divided by earnings per share for a 12-month period.
Shows the "multiple" of earnings at which a stock sells. The P/E ratio is determined by dividing current price by the most recent four quarters' earnings per share.
The P/E ratio represents the relationship between a company''''s stock price and earnings. For example, a P/E of 10 means that the company is selling for ten times its current earnings per share. Also known as "multiple," the ratio is calculated by dividing the current price of the stock by the current earnings per share.
The ratio of a stock's current price to its earnings per share over the past year. The PE ratio of a fund is the weighted average of the PE ratios of the stocks it holds.
Stock price divided by earnings per share. A stock's P/E is an indication of how much investors are willing to pay for the stock's earnings potential.
The weighted average of the price/earnings ratios of the stocks in a fund's portfolio. The P/E ratio of a stock is calculated by dividing the current price of the stock by its trailing 12 months' earnings per share.
The price of a stock divided by its earnings per share. The P/E ratio may use either the reported earnings from the latest year (trailing P/E) or an analyst's forecast of the next year's earnings (forward P/E). The ratio gives investors an idea of how much they are paying for a company's earning power. The P/E ratio for Domestic Stocks is based upon 12 months looking forward and the P/E ratio for Foreign Stocks is based upon the fund's current fiscal year.
The market price of a stock divided by the company's annual earnings per share. Because the P/E ratio is a widely regarded yardstick for investors, it often appears with stock price quotations.
A measurement of a company's value as expressed by the stock market. P/E is a company's stock price divided by its net income per share. When a company has a high P/E, that typically means investors are willing to pay a premium for its stock in anticipation that net income will continue to grow at a certain pace. Low P/E also could signal a company is viewed negatively by investors.
Price of a stock divided by its earnings per share, typically over the last 12 months.
Share price divided by earnings per share over the latest 12-month period. The result offers investors a way of comparing companies' prospects - a high P/E ratio suggests a company has strong growth potential.
A measure of a share's price for quoted companies in relation to its last twelve months' earnings per share. Often, the higher the sustainable growth rate of a company, the higher its price-to-earnings ratio.
The P/E ratio is a measure of the level of confidence investors have in a company (rightly or wrongly). Generally, the higher the figure, the higher the confidence. It is calculated by dividing the current share price by the last published earnings per share - where earnings per share is net profit divided by the number of ordinary shares.
The price of a share of stock divided by earnings per share. The P/E ratio gives financial analysts and investors the relationship between the price of a stock and its underlying value. Generally, the higher the P/E ratio the increased potential of risk.
The price earnings ratio compares the earnings per share of a company to the market price of the company's shares. The earnings would normally be for a twelve-month period. The share price would be for a particular day and thus it would not match the earnings period unless it were an average for that period. This ratio can be used to gauge the perceptions of the market to holding shares in particular companies. The higher the P/E ratio, the more popular the share. P/E ratios are often quoted alongside share prices in the national newspapers. Price/earnings ratio = Share price Earnings per share
the market price of a common stock divided by its annual earnings per share for the latest 12-month period
The current market price of a stock divided by the earnings per share of the company. P/E ratio = Market price Earnings per share for the 12- month accounting period P/E ratio indicates the degree of investors' willingness to pay the market price as compared to the company's earning per share. If P/E is high, it may imply that investors expect the company's earnings to continue to grow at a fast pace. It is therefore very common to see high-growth stocks to have a high P/E ratio. However, stocks with P/E ratio significantly higher than their industry average may be considered overpriced and are subject to market correction if their earnings do not meet the investors' expectation.
price of a stock divided by its earnings per share. The price/earnings ratio, also known as multiple, gives the investors an idea of how much they are paying for a company's earnings power.
The share price of a company divided by its earnings per share. A high p/e ratio implies that the company is well thought of for its future prospects.
The current share price divided y the last published earning per share, where earnings per share is net profit divided by the number of ordinary shares. The P/E ratio is a measure of the level of confidence investors have in a company (rightly or wrongly). Generally, the higher the figure, the higher the confidence.
Shows the "multiple" of earnings at which a stock sells. Determined by dividing current price by current earnings per share (adjusted for stock splits). Earnings per share for the P/E ratio is determined by dividing earnings for past 12 months by the number of common shares outstanding. Higher "multiple" means investors have higher expectations for future growth, and have bid up the stock's price.
The share price of a company divided by its earnings per share, i.e. if Tim Brown Co has earnings per share of 45.5p and the market price is 400p , the shares have a P/E ratio of 8.8 (400 / 45.5p). Another common way of expressing the P/E ratio is: 'the shares sell at 8.8 times earning' or 'the shares are on a multiple of 8.8'. The price earning ratio is usually used for comparing companies investment potential.
Current stock price divided by annual earnings per share, usually for the preceding 12 months or projected earnings for the next 12 months.
A ratio used to value a company's shares. It is calculated by dividing the current Market Price per share by the Earnings Per Share.
The ratio of the current price of a stock divided by the annual earnings per share.
A good way to measure what confidence investors have in a company. Simply divide the current share price by the last published earnings per share.
A share's price divided by its last published earnings. It is used as a measure of whether a company's share should be considered expensive. Do not confuse with the yield, which is the dividend as a percentage of the share price. A prospective p/e ratio is based on the forecast of the next annual earnings to be published. A p/e is sometimes called a multiple.
The ratio compares a company's share market value to net profit (i.e. after tax profit). It is calculated by dividing the current market price of the share by the earnings per share of that company. A high P/E implies that investors are buying expensive shares compared with the present earnings flow of the company. P/E is a useful indicator for the evaluation of share prices. Français: Rapport, ratio: Prix/Bénéfice Español: Relación precio-beneficio (por acción) (PB), relación entre cotización y precio (PER)
The financial year-end closing prices on the JSE Securities Exchange South Africa converted to US cents using the closing financial year-end exchange rate divided by headline earnings per share.
A tool for comparing the prices of different common stocks by assessing how much the market is willing to pay for a share of each corporation's earnings. It is calculated by dividing the current market price of a stock by the earnings per share.
The relationship between a stock's price and its earnings per share. It is calculated by dividing the stock's price per share by earnings per share for a twelve month period. For instance, a stock selling for $25 a share and earning $5 a share is said to be selling at a P/E ratio of 5. The ratio, also known as the "multiple", gives an investor an approximation of how much they are paying for a corporation's earning power. Low P/E stocks are usually in mature industries. They may be blue chip or out of favor companies. In either case, their growth potential is limited. Companies with high P/E ratios (over 20) are usually up-and-comers that are fast growing. These companies are riskier investments. See: Blue Chip; Earnings Per Share; Out Of Favor; Risk
The P/E ratio for an individual stock compares the stock price to the company's earnings per share. (This figure is often calculated using trailing 12-month earnings, but some stock pickers use forecasted earnings.) The P/E indicates how much the market will pay for a company's earnings. A high P/E usually indicates a strong belief in the company's ability to increase those earnings. A low P/E indicates the market has less confidence that the company's earnings will increase. The P/E ratio for a mutual fund is the weighted average of the price/earnings ratios of the stocks in a fund's portfolio.
the share price of a stock divided by its per-share earnings over the past year. For a portfolio, the weighted average P/E ratio of the stocks in the portfolio. P/E is a good indicator of market expectations about a company's prospects; the higher the P/E, the greater the expectations for a company's future growth in earnings.
A ratio calculated by dividing a stock's price by the underlying company's earnings per share. Used to help gauge a company's stocks price relative to the strength of corporate earnings.
An indicator of a stock's value derived by dividing the stock's price by its earnings per share for a 12-month period. Applied to mutual funds, the P/E ratio is the weighted average of all the stocks' P/E ratios in the fund's portfolio. Stocks with high P/Es compared to the overall market are typically growth stocks. Stocks with low P/Es are sometimes considered overlooked value stocks.
A ration derived by dividing the market price of a company by earnings per share. This is thought to gage the value of the stock relative to current market conditions.
A common measure for identifying undervalued and overvalued stock. It uses the relationship between a company's earnings and share price to value a company's stock. The P/E ratio is calculated by dividing the current market price per share by the earnings per share. A stock's P/E ratio gives you a sense of what you are paying for a stock in relation to its earning power (e.g., a stock with a P/E of 20 is trading at 20 times its earnings). If a company's market price is $40 and the earnings per share is $4, the P/E ratio for the company is 10.
A stock's market price divided by its current or estimated future earnings. A measure of the attractiveness of a particular security versus all other securities as determined by the investing public.