price-earnings ratio

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Also found in: Financial.
Related to Price-Earnings: price-earnings ratio, Forward Price to Earnings

price-earn·ings ratio

(prīs′ûr′nĭngz)
n.
The ratio of the market price of a common stock to its earnings per share.

price-earnings ratio

n
(Stock Exchange) 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. Abbreviation: P/E ratio

price′-earn′ings ra`tio


n.
the current price of a share of common stock divided by earnings per share over a 12-month period, often used in stock evaluation. Abbr.: p/e
[1960–65]
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References in periodicals archive ?
The study tests the reliability of one of the most widely used measures of risk, beta (B), during such negative price swings and tests the predictive power of price-earnings ratio as an alternative to beta in measuring risk.
Investors can rank corporations by their return on equity, earnings per share, price-earnings ratio and numerous other measures.
Vinciquerra said most mid-sized banks get nine to 12 times forward earnings multiples, the price-earnings ratio on next year's forecasted earnings.
The price-earnings ratio (PE), another way of evaluating a stock, shows the relation between a stock's price and the company's earnings.
Consider, for instance, that funding a large loss through borrowing will increase the company's debt-to-equity ratio and retard the future growth of the company, which in turn reduces the company's price-earnings ratio.
Quote Track provides company news and vital information, such as projected growth rate, projected earnings, operating income and price-earnings ratio.
Commission 10-K extracts, earnings-per-share estimates and price-earnings forecasts for thousands of publicly traded companies.
Growth stocks tend to exhibit higher price-to-book and price-earnings ratio, lower dividend yields and higher forecasted growth levels.
It would also offer investors shares that might sell for a higher price-earnings multiple than Microsoft itself.
Investment philosophy: ``Although we believe that good earnings, stock rankings, price-earnings ratio and management are important, money goes where money is.