Price-Earnings Ratio

price-earnings ratio (P/E) " the earnings per share of a stock as compared to the price; i.e. if the price the stock trades at is $10 and the earnings per share is $1, the P/E is 10:1 ...

Price-Earnings Ratio (PE Ratio): A stock's market price divided by its current or estimated future earnings per share.

Price-Earnings Ratio: The quotient obtained by dividing a stock's current market price by the current yearly earnings per common share. Also called "multiple." Eg, "Intel is trading at a multiple of 26" or "Intel has a P/E of 26." ...

price-earnings ratio: Price per share of a stock, divided by its last 12 months of earnings. This ratio reveals how popular a stock is because it reflects how much people are willing to pay for it.

Price-Earnings Ratio
The price-earnings ratio is the most popular measure. It consists of finding a company in which the price-earnings (P/E) ratio is low when compared to similar companies.

Price-earnings ratio to earnings per share growth (P/E to EPS growth) - The ratio found by dividing a stock"s price-earnings ratio by its earnings per share growth rate, indicating the company"s profits relative to investors" expectations.

Low price-earnings ratio effect
The tendency of portfolios of stocks with a low price earnings ratio to outperform portfolios consisting of stocks with a high price-earnings ratio.

Price-Earnings ratios as a predictor of twenty-year returns based upon the plot by Robert Shiller (Figure 10.1,[1] source).

Price-Earnings Ratio
(P/E) Ratio: A tool for comparing the prices of different common stocks by assessing how much the market is willing to pay for a share ...
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price-earnings ratio
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Price-earnings ratio.
Pre-market
Transactions with securities before the official start of trading on the Stock Exchange.

Price-earnings ratio
Shows the multiple of earnings at which a stock sells. Determined by dividing current stock price by current earnings per share (adjusted for stock splits).

The price-earnings ratio of a firm's common stock calculated as the current stock price divided by estimated earnings per share for the coming year. Compare trailing P/E.
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The estimated price-earnings ratio adjusted for the current level of interest rates.
Earnings Per Share - EPS ...

P/E Ratio or Price-Earnings Ratio:
An indicator of how highly a share is valued in the market. Arrived at by dividing the price or a share by the earnings per share (EPS).

Long-term debt to equity ratio A capitalization ratio comparing long-term debt to shareholders' equity. Low price-earnings ratio effect The tendency of portfolios of stocks with a low price earnings ratio to outperform portfolios consisting ...

Practitioners have claimed that low price-earnings ratio stocks are generally bargains and do much better than the market or stocks with high price earnings ratios.

P/E Ratio - Price-earnings ratio or earnings multiple. Calculated by dividing price per share by earnings per share.

The experienced value investor will analyze a range of the businesses' financial fundamentals such as the price-earnings ratio (P/E), earnings yield, ...

P - Paid-up Capital, Paid-up Share, Panic Selling, Paper Loss, Paper Profit, Partial Delivery, Par Value, Pathfinder Prospectus, Payout Ratio, P/D Ratio, Penny Shares, Perfect Competition, Performance Stock, P/E Ratio or Price-Earnings Ratio, ...

The inverse of the price-earnings ratio. It is the total twelve months, earnings divided by number of outstanding shares, divided by the recent price, multiplied by 100. The end result is shown in percentage terms.

Tables found in newspapers Listing prices, dividends, yields, price-earnings ratios, Trading volume, and other important data On stocks, bonds, mutual funds, and futures contracts.

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Tilted portfolioAn indexing strategy that is linked to active management through the emphasis of a particular industry sector, selected performance factors such as earnings momentum, dividend yield, price-earnings ratio, ...

"One is pH-F, my fundamental indicator, and keys off the S&P earnings yield rather than its price-earnings ratio. This has kept me on the right side of the bull market of the 1990s.

Overvalued Stock whose current price is higher than its perceived actual value. Overvaluation is hard to determine, but is commonly measured using price-earnings ratios, earnings expectations or analyses of corporate balance sheets.

Growth stock
The stock of a firm that is expected to have above-average increases in revenues and earnings. Growth stocks often sell at high price-earnings ratios and are subject to wide swings in price. (Compare Income stock.)
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The mid-point of the Target Price Range can be figured out by multiplying the stock's projected 3- to 5-year earnings per share by its assumed price-earnings ratio out to that time. We add a safety factor to determine the range.

Earnings Yield: A firm's current annual earnings per share divided by the share's market price. Reciprocal of the price-earnings ratio.

Fundamentals Basic financial and economic factors affecting the success of a company and the price of its stock. Fundamentals of a company would include factors such as earnings and revenue growth, price-earnings ratio, ...

Other factors in favor of long-term debt include: large profit margins, potential increase in profits, low price-earnings ratio with regard to the interest rates, and expected increase in the price levels.

price-earnings ratio A common measure of the degree of expensiveness of a stock. The P/E ratio is... price-weighted index A stock index, where each stock affects the index in proportion to its price per share.

See also: Earnings, Investment, Stock, Ratio, Share