- the current price of a share of common stock divided by earnings per share over a 12-month period, often used in stock evaluation. Abbreviation: p/e
Origin of price-earnings ratio
First recorded in 1960–65
Also called price-earnings multiple.
Dictionary.com Unabridged Based on the Random House Unabridged Dictionary, © Random House, Inc. 2018
- the ratio of the price of a share on a stock exchange to the earnings per share, used as a measure of a company's future profitabilityAbbreviation: P/E ratio