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

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 See all Example Sentences for price-earnings ratio

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

See more words from the same year

Cite this Entry

Style

“Price-earnings ratio.” Merriam-Webster.com Dictionary, Merriam-Webster, https://www.merriam-webster.com/dictionary/price-earnings%20ratio. Accessed 27 Jul. 2024.

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