price-earnings ratio
noun
price-earn·ings ratio
ˈprīs-ˈər-niŋz- 
: 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
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Stocks with low price-earnings ratios (low p/e’s) attract the interest of value investors.
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John Navin, Forbes.com, 30 Aug. 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
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John Navin, Forbes.com, 30 Aug. 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
See All Example Sentences for price-earnings ratio
Cite this Entry
“Price-earnings ratio.” Merriam-Webster.com Dictionary, Merriam-Webster, https://www.merriam-webster.com/dictionary/price-earnings%20ratio. Accessed 11 Sep. 2025.
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