price-earnings ratio

American  

[prahys-ur-ningz rey-shoh, -shee-oh] / ˈpraɪsˈɜr nɪŋz ˌreɪ ʃoʊ, -ʃiˌoʊ /

Also P/E ratio

noun

1. the current price of a share of common stock divided by earnings per share over a 12-month period, often used in stock evaluation. P/E, p/e, PE, P-E, p-e

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price-earnings ratio British  

noun

1.  P/E ratio.  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 profitability

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Etymology

Origin of price-earnings ratio

First recorded in 1960–65

Example Sentences

Still, that price-earnings ratio has fallen from about 32 times at the start of the year, according to FactSet data.

From Barron's

With steady earnings and enhanced capital management, Telekom’s shares, trading at 2026 estimated price-earnings ratio of 13.0X and offering an expected 4.7% dividend yield in 2025, could have re-rating potential, he adds.

From The Wall Street Journal

Another frequently used metric is the Shiller cyclically-adjusted price-earnings ratio that, at 40, also stands at a 25-year high.

From MarketWatch

Hasbro also commands a higher price-earnings ratio of 15.2 times next year’s earnings, compared with Mattel’s 11 times estimates.

From Barron's

Treasury market when the government owes $38 trillion; the corporate bond market where yields relative to government debt are the meanest in two decades; equities valued at forty times their cyclically-adjusted price-earnings ratio; or gold, “that’s just gone vertical.”

From MarketWatch