price-earnings ratio

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price-earn·ings ratio

The ratio of the market price of a common stock to its earnings per share.

price-earnings ratio

(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

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
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Price-earnings ratios are near the high end of their historical ranges.
Last week, however, they were trading 2 to 3 percent lower of their sectoral average price-earnings ratios.
Ghalibaf Asl also said the price-earnings ratios showed stock prices were not over-inflated and that he didn't think the stocks boom was a bubble.
The second covers price-earnings ratios, market-to-book ratios, and stock returns; earnings and stock returns; and fundamental analysis and stock returns.
This implies a preference for large-cap stocks at the expense of mid and small caps, and for companies with low price-earnings ratios and high yields.
Analysts who hold this view point out that, in the past, high price-earnings ratios have usually been followed by slow growth in stock prices.
Price-earnings ratios by themselves are not effective predictors of stock market value.
Investors should mix their holdings to include about 30 percent technology stock, some value stocks that have low price-earnings ratios and solid industry leaders, Christopher said.
Based on some preliminary findings, such firms have lower price-earnings ratios and smaller appreciations in market value over time than profit-oriented firms.
Milne also warns that it's unrealistic to value a private company by relying on the price-earnings ratios that prevail among public companies.