price-earnings ratio

[ prahys-ur-ningz ]
/ ˈpraɪsˈɜr nɪŋz /

noun

the current price of a share of common stock divided by earnings per share over a 12-month period, often used in stock evaluation. Abbreviation: p/e
Also called price-earnings multiple.

Origin of price-earnings ratio

First recorded in 1960–65

British Dictionary definitions for price-earnings ratio

price-earnings ratio

noun

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