price-earnings ratio

[prahys-ur-ningz]

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. 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. 2019

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