Current market price of a stock divided by its earnings per share. Also known as the "multiple," the price-to-earnings ratio gives investors an idea of how much they are paying for a company's earning power and is a useful tool for evaluating the costs of different securities. Some firms use the inverse ratio for this calculation (i.e. earnings-to-price ratio).
"PtE" is the ratio of the market price of a firm's common stock to its current (or predicted) earnings per share. A high (low) PtE ratio is often an indicator of market sentiment in the continued growth (decline) of a firm's earnings. share price= earnings per share
The price-earnings (â€œp/eâ€) ratio is an accounting ratio that is concerned with measuring the overall profitability of a business based in relation to the equity shareholders who will share in that profit. The p/e ratio is defined as the share price divided by the earnings per share. Broadly speaking, the higher a businessâ€(tm)s P/E ratio, the more expensive the business and the more highly rated it is. (See also earnings per share)
A popular way to compare stocks selling at various price levels. The P/E ratio is the price of a share of stock divided by earnings per share for a 12-month period. For example, a stock selling for $50 a share and earning $5 a share is said to be selling at a price-to-earnings ratio of 10.
The relationship between a company's earnings and its share price, calculated by dividing the current share price of a stock by its earnings per share for a twelve month period. AKA: Outside director, independent director
A ratio to evaluate a stock's worth. It is calculated by dividing the stock's price by an earnings-per-share figure. If calculated with the past year's earnings, it is called the trailing P/E. If calculated with an analyst's forecast for next year's earnings, it is called a forward P/E. The biggest weakness with either type of P/E is that companies sometimes "manage" their earnings with accounting wizardry to make them look better than they really are. Thatâ€(tm)s why some analysts prefer to focus on the price-to-cash flow measure instead.
This is the market price per equity share divided by EPS. Better put as the number of times its own earnings that a stock is selling for in the stock market. It is a popular valuation tool and factors in tangibles and intangibles like growth prospects, quality of management, liquidity in the scrip and quality of earnings. It is popularly known as the PE.
The price of a share divided by the company's annual earnings per share. This shows how much investors are paying for a company's earning power. The higher the P/E, the more investors are paying, and therefore more earnings growth is expected.