Definitions for **"price-earnings ratio"**

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

A popular measure for comparing stocks selling at different prices in order to single out over or undervalued issues. The P/E ratio is simply the price per share divided by the company's earnings per share. However, P/E is not always an accurate guide to a stock's quality. Some people tend to think that a stock is inflated and drastically overvalued if its price is many times its earnings. Yet that same stock may be quite accurately valued to reflect the company's rapid growth and potential for high future earnings. When comparing P/Es it is therefore important to choose stocks in the same industry which are likely to face the same earnings prospects.

The P/E ratio is the most important yardstick for assessing the relative worth of a share. It reflects the markets appraisal of the shares future prospects. A high P/E ratio suggests a company has good prospects of achieving above-average growth in the future. The P/E ratio of a company is calculated by dividing its share price by its earnings per share.

Shows the number of times the price covers the earnings per share over a twelve month period. Investors commonly use this ratio to measure the attractiveness of particular shares and to compare shares in one company with those in another.

Price of a share of stock divided by earnings per share for a 12-month period. Also called P/E Ratio.

Calculated as share price divided by current earnings per share.

A popular way to compare stocks selling at various price levels. The Price Earnings Ratio or P/E ratio is the price of a share of stock divided by earnings per share for a twelve-months period.

Shows the multiple of earnings at which a stock sell. This is determined by dividing current stock price by current earnings per share.

The quotient obtained by dividing a stock's current market price by the current yearly earnings per common share. Also called “multiple.” Eg, “ Intel is trading at a multiple of 26” or “ Intel has a P/E of 26.

Shows the multiple of earnings at which a stock sells. Determined by dividing current stock price by current earnings per share (adjusted for stock splits). Earnings per share for the P/E ratio are 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.

An equation used by some investors to gauge the relative value of a security in light of current market conditions.

Stock market price divided by its current or estimated future earnings per share (EPS). Investors use the PE Ratio as a fundamental measure of the attractiveness of a security. The lower the ratio relative to the average of the stock market, the lower the market's profit growth expectations.

Also referred to as a 'multiple,' a value calculated by dividing the price of the stock by the earnings per share and commonly used to compare against companies in the same sector.

Price per share of a stock, divided by its last 12 months of earnings. This ratio reveals how popular a stock is because it reflects how much people are willing to pay for it. An underwriter determines a P/E ratio for a company during its initial public offering (when it first goes public).

(or P-E) is the price of the company's common stock as of the close of the previous trading day divided by the actual number or estimated (as indicated) earnings per share for the period indicated.

A common stock analysis statistic in which the current price of a stock is divided by the current (or sometimes the projected) earnings per share of the issuing firm. As a rule, a relatively high price-earnings per share of the issuing firm. As a rule, a relatively high price-earnings ratio is an indication that investors believe the firm's earnings are likely to grow. Price-earnings ratios vary significantly among companies, among industries, and over time. One of the important influences on the ratio is long-term interest rates. In general, relatively high rates result in low price-earning ratios; low interest rates result in high price-earning ratios.--Also called earnings multiple; market multiple; multiple; P/E ratio.

measures the relationship between the market price of a company's shares and the earnings per share.

This is the market price of the stock divided by the current per share earnings of the corporation. More on P/E

Share price divided by consolidated net result of the Group per share.

the earnings per share of a stock as compared to the price; i.e. if the price the stock trades at is $10 and the earnings per share is $1, the P/E is 10:1

A common stock's last closing market price per share divided by the latest reported 12-month earnings per share. This ratio shows you how many times the actual or anticipated annual earnings a stock is trading at.

The price of a stock divided by annual share profit, used to indicate whether a stock market is relatively expensive or inexpensive. The market price of a common stock divided by annual earnings per share. Also called P/E ratio or P/E multiple. For instance, if a company's net earnings amount to $1 million and it has one million shares outstanding, its earnings per share are one $1; if its shares are trading at $10, then its P/E ratio is 10 to 1. It indicates what investors are willing to pay for one year of a company's earnings per share.

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.

The ratio between the market price of a stock and its earnings per share.

The ratio, often called the P/E ratio, computed by dividing the market price per share of common stock at a specific date by the company's earnings per share on common stock.

The price of a stock divided by its reported earnings. It is an indicator of how much investors are willing to pay for an opportunity to share in firm's future earning potential.

Market price per share divided by the firm's earnings per share. A measure of how the market currently values the firm's earnings growth and risk prospects.

The current market price of the stock divided by some measure of earnings per share.

The current price of a share of stock divided by the earnings per share of the issuing firm. The P/E is used to compare stocks selling at different price levels.

The ratio of earnings per share to current stock price.

The ratio found by dividing market price per share by earnings per share (This ratio indicates what investors think of the firm's earnings' growth and risk prospects.)

Price of a stock divided by its earnings per share. The P/E ratio may either use the reported earnings from the latest year or employ an analyst's forecast of next year's earnings. The price-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 compares the current stock price of a corporation to its earnings per share. A stock that is currently selling at $16 and has $1 of earnings per share has a P/E ratio of sixteen. Historically, ratios of sixteen to twenty-five were typical, for stocks, with variations due to the economy, industry variables, and company performance. In recent years, high-tech stocks lured many investors into ignoring traditional standards such as the P/E ratio.

The market price of a stock divided by its current or estimated future earnings per share. This is a figure that is often relied upon when making a decision on the potential purchase of a stock. The lower the ratio relative to the average of the share market, the lower the (market's) profit growth expectations. Also cal ed Earnings Multiple.

The share price divided by the earnings per share. It is a measurement of how highly a share is valued. A high PE suggests that investors believe a company has good prospects of achieving above-average growth in the future, even if earnings are not that high at the moment. Strong demand for the company's shares pushes the price up.

The ratio derived by dividing the price by the earnings. A $10 stock that has $2 in annual earnings has a p/e of 5.

The market price of a share divided by the earning per share.

A common stock's current market price divided by its annual earnings per share.

A popular way to compare stocks selling at various price levels. The PE ratio is the price of a share of stock divided by earnings per share for a twelve-month period. For example, a stock selling for $50 a share and earning $5 a share is said to be selling at a price-earnings ratio of 10.

A stock's market price divided by its current or estimated future earnings per share. The P/E Ratio is used by investors as a fundamental measure of the attractiveness of a particular security versus other securities. The lower the ratio relative to another security or the average of the stock market, the lower the market's profi t growth expectations.

A measure of growth potential, earnings stability, and management capabilities; computed by dividing market price per share by earnings per share.

A stock's market price divided by its current or estimated future earnings per share; a fundamental measure of the attractiveness of a particular security versus all other securities as determined by the investing public. The lower the ratio relative to the average of the stockmarket, the lower the (market's) profit growth expectations. Also called Earnings Multiple.

A share's market price divided by annual earnings per share. This ratio is used as a tool in determining the relative value of a particular stock. The shares of companies with steady above-average growth rates tend to have higher than average price-earning ratios.

Current price of a stock divided by its trailing 12-months earnings.

The P/E ratio represents the market's expectations of a given company's earnings growth potential. It is equal to the firm's current stock price divided by its earnings per share. A P/E ratio typically utilizes a firm's trailing 12-month earnings, but estimated earnings may also be used (in this event, the P/E is called a “forward P/E”).

used by analysts to determine whether a stock is undervalued or overvalued; it is determined by dividing the stock price by earnings per share (e.g., if a stock is selling for $50 per share and has earnings per share of $10, the P/E ratio is 5)

The price-earnings ratio is a measure of how much buyers are willing to pay for shares in a company, based on that company's earnings. Price earnings ratio is calculated by dividing the current price of a share in a company by the most recent year's earnings per share of the company. This ratio is a useful way of comparing the value of stocks and helps to indicate expectations for the company's growth in earnings. It is important, however, to compare the P/E ratios of companies in similar industries. Price-earnings ratio is sometimes also called the "multiple".

A common share's current market price, divided by the company's annual earnings per share.