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price-earnings ratio

[ prahys-ur-ningz rey-shoh, -shee-oh ]
/ ˈpraɪsˈɜr nɪŋz ˌreɪ ʃoʊ, -ʃiˌoʊ /
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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
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Also P/E ra·tio [pee-ee-rey-shoh, -shee-oh] /ˈpiˈi ˌreɪ ʃoʊ, -ʃiˌoʊ/ .
Also called price-earn·ings mul·ti·ple [prahys-ur-ningz muhl-tuh-puhl] /ˈpraɪsˈɜr nɪŋz ˌmʌl tə pəl/ .

Origin of price-earnings ratio

First recorded in 1960–65
Dictionary.com Unabridged Based on the Random House Unabridged Dictionary, © Random House, Inc. 2023

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
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