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price-to-earnings ratio

   Also found in: Financial, Acronyms, Hutchinson 0.01 sec.
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Noun1.price-to-earnings ratio - (stock market) the price of a stock divided by its earnings
securities market, stock exchange, stock market - an exchange where security trading is conducted by professional stockbrokers
ratio - the relative magnitudes of two quantities (usually expressed as a quotient)


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The deal may lure investors back to bank shares trading at a 67 per cent discount to their five-year average price-to-book ratio and a 48 per cent discount to the average price-to-earnings ratio, Credit Suisse's Hawa wrote.
Following the recent rally, the S& P 500 index is now trading on a 2009 price-to-earnings ratio of 22 times.
Stocks, as evaluated by their price-to-earnings ratios, are undervalued to the point where they could draw enough investors to spark a recovery before the end of 2009.
 
 
 
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