Dictionary.com

price-earnings ratio

[ prahys-ur-ningz ]
/ ˈpraɪsˈɜr nɪŋz /
Save This Word!

noun
the current price of a share of common stock divided by earnings per share over a 12-month period, often used in stock evaluation. Abbreviations: P/E, p/e, PE, P-E, p-e
QUIZ
ARE YOU A TRUE BLUE CHAMPION OF THESE "BLUE" SYNONYMS?
We could talk until we're blue in the face about this quiz on words for the color "blue," but we think you should take the quiz and find out if you're a whiz at these colorful terms.
Question 1 of 8
Which of the following words describes “sky blue”?
Meet Grammar CoachWrite or paste your essay, email, or story into Grammar Coach and get grammar helpImprove Your Writing
Meet Grammar CoachImprove Your Writing
Write or paste your essay, email, or story into Grammar Coach and get grammar help
Also called price-earnings multiple.

Origin of price-earnings ratio

First recorded in 1960–65
Dictionary.com Unabridged Based on the Random House Unabridged Dictionary, © Random House, Inc. 2021

How to use price-earnings ratio in a sentence

British Dictionary definitions for price-earnings ratio

price-earnings ratio

noun
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
Collins English Dictionary - Complete & Unabridged 2012 Digital Edition © William Collins Sons & Co. Ltd. 1979, 1986 © HarperCollins Publishers 1998, 2000, 2003, 2005, 2006, 2007, 2009, 2012
FEEDBACK