price-earnings ratio

noun

price-earn·​ings ratio
: 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

Example Sentences

Recent Examples on the Web The bank holding company headquartered in Detroit has a market cap of $11.01 billion; its shares were trading around $35.67 on Monday with a price-earnings ratio of 5.13, a price-book ratio of 0.96 and a price-sales ratio of 1.34. Gurufocus, Forbes, 16 Aug. 2022 The company has a shareholder yield of 4.9%, an enterprise-value-to-EBITDA-ratio of 5.2 and a price-earnings ratio of 5.1. Charles Rotblut, Forbes, 10 Nov. 2022 That fueled a 12-fold appreciation in U.S. technology stocks, as the sector’s average price-earnings ratio rose to 34 from 13. Vivek Ramaswamy And David Sokol, WSJ, 24 Oct. 2022 For the year, revenue is expected to rise 1.4% to $12.1 billion, with earnings jumping 36% to $5.91 per share, giving the stock a forward price-earnings ratio of 6.0, just slightly above its five year average P/E of 5.9. John Dobosz, Forbes, 9 Aug. 2022 This favorite of the famous Omaha value investors trades at 1.96 times book value with a price-earnings ratio of 15 and a forward p/e of 11. John Navin, Forbes, 8 Oct. 2022 Currently, Delta’s price-earnings ratio is not applicable due to negative earnings. Charles Rotblut, Forbes, 8 Apr. 2021 The telecommunications company headquartered in New York has a $191.34 billion market cap; its shares were trading around $45.56 on Monday with a price-earnings ratio of 9.14, a price-book ratio of 2.21 and a price-sales ratio of 1.41. Gurufocus, Forbes, 16 Aug. 2022 The Nasdaq 100’s price-earnings ratio is about 5% above its average over the past decade. Ryan Vlastelica, Fortune, 31 Aug. 2022 See More

These example sentences are selected automatically from various online news sources to reflect current usage of the word 'price-earnings ratio.' Views expressed in the examples do not represent the opinion of Merriam-Webster or its editors. Send us feedback.

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 3 Feb. 2023.

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