price-earnings ratio

noun
price-earn·​ings ratio

Definition of price-earnings 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

Examples of price-earnings ratio in a Sentence

Recent Examples on the Web The Value Grade is the percentile rank of the average of the percentile ranks of the valuation metrics mentioned above along with the price-earnings ratio, price-to-book-value ratio and price-to-free-cash-flow ratio. Charles Rotblut, Forbes, 10 June 2021 With a gain of 31.72% year to date, Kinder Morgan (KMI, Financial) has a $40.75 billion market cap; its shares were trading around $18.01 on Mondaywith a price-earnings ratio of 22.21, a price-book ratio of 1.27 and a price-sales ratio of 2.95. Gurufocus, Forbes, 29 June 2021 The Value Grade is the percentile rank of the average of the percentile ranks of the valuation metrics mentioned above along with the enterprise-value-to-Ebitda (EV/Ebitda) ratio, price-earnings ratio and shareholder yield. Charles Rotblut, Forbes, 21 May 2021 The Chinese e-commerce company has a market cap of $572.88 billion; its shares were trading around $211.12 on Monday with a price-earnings ratio of 24.65, a price-book ratio of 4 and a price-sales ratio of 6.13. Gurufocus, Forbes, 21 May 2021 The forward price-earnings ratio for the S&P 500 High Dividend Index was 16. Charles Rotblut, Forbes, 2 Mar. 2021 But my research suggests that in the early 1920s, scarcely anyone, outside of investment professionals, knew what a price-earnings ratio was. Robert J. Shiller, New York Times, 16 Apr. 2021 In 2016, the S&P 500’s forward price-earnings ratio was 17. Charles Rotblut, Forbes, 2 Mar. 2021 Currently, Caterpillar’s price-earnings ratio is 41.3. Charles Rotblut, Forbes, 3 Mar. 2021

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.

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First Known Use of price-earnings ratio

1929, in the meaning defined above

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

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Dictionary Entries Near price-earnings ratio

price-earnings multiple

price-earnings ratio

price-fixing

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Cite this Entry

“Price-earnings ratio.” Merriam-Webster.com Dictionary, Merriam-Webster, https://www.merriam-webster.com/dictionary/price-earnings%20ratio. Accessed 21 Oct. 2021.

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