price-earnings ratio

noun

price-earn·​ings ratio ˈprīs-ˈər-niŋz- How to pronounce price-earnings ratio (audio)
: a measure of the value of a common stock determined as the ratio of its market price to its annual earnings per share and usually expressed as a simple numeral

Examples of price-earnings ratio in a Sentence

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Without referencing the price-earnings ratio or other such fundamental metrics, how has the company been trading? John Navin, Forbes.com, 23 May 2025 For investors seeking long-term plays, Wolfe Research compiled a list of stocks with second quintile dividend yields — meaning their payouts land between 60% and 80% of the highest — and low price-earnings ratios. Darla Mercado, Cfp®, CNBC, 22 May 2025 Not Enough People Are Watching ‘NYT Mini’ Clues And Answers For Saturday, April 26 New Google Leak Reveals Subscription Changes For Gemini AI Apple Hospitality trades with a price-earnings ratio of 13.41, far below the p/e of the S&P 500 now at 34.22. John Navin, Forbes.com, 26 Apr. 2025 The forward price-earnings ratio is 6 and the REIT trades at 41% of its book value. John Navin, Forbes.com, 18 Apr. 2025 See All Example Sentences for price-earnings ratio

Word History

First Known Use

1929, in the meaning defined above

Time Traveler
The first known use of price-earnings ratio was in 1929

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Cite this Entry

“Price-earnings ratio.” Merriam-Webster.com Dictionary, Merriam-Webster, https://www.merriam-webster.com/dictionary/price-earnings%20ratio. Accessed 29 May. 2025.

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