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

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Word History

First Known Use

1929, in the meaning defined above