To see details on the word
price earnings ratio (P E)
please enable javascript.

price/earnings ratio (P/E)


The problem with the price/earnings ratio is that earnings fall so fast in a recession.
  the price of a stock divided by earnings per share; for example, if the share price is $150 and company earnings are $10 per share, then the P/E ratio is 15
Home
 Mark word for later review on this computer
price/earnings ratio price to earnings ratio P/E multiple stock multiple
Notes:
Often referred to as a stock’s "multiple" or "times earnings". The P/E ratio is typically calculated using the previous 12 month’s of earnings, but it is sometimes quoted based on 12 months of projected earnings.

Stock of companies that are growing quickly typically sell at higher P/E ratios since earnings are expected to grow with the company. Stock of companies that are perceived as less risky, typically sell at lower P/E ratios.

Forecasters often look at P/E ratios for the entire market as one factor in the measure of excessive optimism or pessimism relative to underlying fundamentals.
Web Links:
(try right-click if popups are disabled)
Dictionary - Vocabulary.com®
Dictionary/Synonyms - Google®
Dictionary List - OneLook®
Wikipedia Article
Samples:
  • The problem with the price/earnings ratio is that earnings fall so fast in a recession.
Search for samples from other sources:
(try right-click if popups are disabled)
Interest -- Source
General -- Google News®
General -- Time® Magazine
General -- Twitter®
Associated words [difficulty]:   price/earnings ratio (P/E) , common stock [9]
     If popups are enabled: Search in OneLook®   If Flash® is also enabled: Search in Visuwords®
Most commonly used in these subjects:   Personal Finance, Business, Engineering
Home
verbalworkout.com . . . enhancing vocabulary while reading