What is the 'Price-Earnings Ratio - P/E Ratio'?

The Price-to-Earnings Ratio or P/E ratio is a ratio for valuing a company that measures its current share price relative to its per-share earnings. ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌

Term of the Day | INVESTOPEDIA Price-Earnings Ratio - P/E Ratio The price-earnings ratio (P/E ratio) is the ratio for valuing a company that measures its current share price relative to its per-share earnings. The price-earnings ratio is also sometimes known as the price multiple or the earnings multiple. Breaking it Down: In essence, the price-earnings ratio indicates the dollar amount an investor can expect to invest in a company in order... Read More » Related to "Price-Earnings Ratio - P/E Ratio" Beware False Signals From the P/E Ratio The P/E ratio is a simple tool for evaluating a company, but it can also send false signals. Read More » 5 must-have metrics for value investors In this article, we outline the five ratios that can help value investors find the most undervalued stocks in the market. Read More » How to Find P/E And PEG Ratios If calculating the P/E and PEG ratios have you in the dark, these easy calculations should help. Read More » Related Definitions Current Ratio The current ratio is a liquidity ratio that measures a company's ability to pay short-term and long-term obligations. Read More » Earnings Yield The earnings yield refers to the earnings per share for the most recent 12-month period divided by the current market price per share. Read More » Price-Earnings Relative The price-earnings relative figure is the price-earnings ratio of a stock divided by the price-earnings ratio of an index or industry. Read More » Franchise P/E Franchise P/E, the present value of new business opportunities available to a business, measures the strength of its business model and its profitability. Read More » CONNECT WITH INVESTOPEDIA Email sent to: mondemand.forex@blogger.com If you wish to unsubscribe, please click here, or manage subscriptions 114 West 41st St, floor 8 New York NY 10036 © 2018, Investopedia, LLC, All Rights Reserved | Privacy Policy