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

Recent Examples on the Web The stock trades at 1.53 times book with a price-earnings ratio of 12. John Navin, Forbes, 29 Mar. 2024 By comparison, Meta’s price-earnings ratio is 34, Cristian Tiu, a finance professor at the University of Buffalo, told McClatchy News. Brendan Rascius, Miami Herald, 26 Mar. 2024 Price-to-Sales Ratio The price-earnings ratio is ineffective at gauging the quality of companies with erratic earnings or no earnings at all. Charles Rotblut, Forbes, 29 Feb. 2024 To give a 10% return at a (better-than-average) price-earnings ratio of 25, Nvidia must earn $200 billion in profit by 2034—twice as much as what Apple and Microsoft make now. Diane Brady, Fortune, 23 Feb. 2024 With a market capitalization of 56.95 billion, the stock is trading at 1.50 times its book value with a price-earnings ratio of 6.29. John Navin, Forbes, 20 Feb. 2024 Additionally, the forward non-GAAP price-earnings ratio is 7.01, which is 27.87% lower than the average over the past five years, indicating that financial market participants remain conservative about Bristol-Myers Squibb's prospects. Gurufocus, Forbes, 29 Nov. 2023 The stock is trading at a 27% discount from its book value, with a price-earnings ratio of 19.88. John Navin, Forbes, 22 Feb. 2023 The company has a score of 41 for the enterprise-value-to-EBITDA ratio, 10 for shareholder yield and 35 for the price-earnings ratio (remember, the lower the score the better for value). Charles Rotblut, Forbes, 27 Jan. 2022

These examples are programmatically compiled from various online sources to illustrate current usage of the word 'price-earnings ratio.' Any opinions expressed in the examples do not represent those of Merriam-Webster or its editors. Send us feedback about these examples.

Word History

First Known Use

1929, in the meaning defined above

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

Dictionary Entries Near 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 21 Jun. 2024.

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