How to Use price-earnings ratio in a Sentence

price-earnings ratio

noun
  • The stock trades with a price-earnings ratio of 7 and at a 40% discount to its book value.
    John Navin, Forbes, 6 Jan. 2025
  • The stock trades at a 4% discount to its book value with a price-earnings ratio of 9.13.
    John Navin, Forbes, 11 Sep. 2024
  • The forward price-earnings ratio is 6 and the REIT trades at 41% of its book value.
    John Navin, Forbes.com, 18 Apr. 2025
  • The startup-heavy ChiNext index trades at a price-earnings ratio of 45.
    Washington Post, 1 Apr. 2019
  • The price-earnings ratio helps to keep your perspective in check.
    Charles Rotblut, Forbes, 26 May 2022
  • Hub Group is in line with its industry peers with a price-earnings ratio of 27.9.
    Charles Rotblut, Forbes, 25 Nov. 2024
  • Look at the price-earnings ratio, or P/E, which is the price of a stock divided by its earnings per share.
    Mark Hulbert, USA TODAY, 20 Mar. 2018
  • There is no price-earnings ratio has there are no earnings.
    John Navin, Forbes, 11 Dec. 2024
  • The Nasdaq 100’s price-earnings ratio is about 5% above its average over the past decade.
    Ryan Vlastelica, Fortune, 31 Aug. 2022
  • Jack in the Box , which runs Chipotle competitor Qdoba, has a price-earnings ratio of 19.
    Justin Lahart, WSJ, 9 Aug. 2017
  • Since there are no recent earnings, Sasol has no price-earnings ratio.
    John Navin, Forbes, 23 Oct. 2024
  • The price-earnings ratio is a common way of measuring a stock’s performance.
    Thomas Heath, Washington Post, 3 Aug. 2019
  • The investment firm almost looks like a value stock at this point, now trading at just above its book value with a price-earnings ratio of just 7.98.
    John Navin, Forbes, 28 June 2022
  • This record level of ownership creates a lockstep movement between the price-earnings ratio of the S & P 500 and the retail flow into the market.
    Yun Li, CNBC, 20 Mar. 2025
  • Apple has a price-earnings ratio--the ratio of its market valuation to its profits--of about 33.
    Arkansas Online, 22 Aug. 2020
  • Having said that, price-earnings ratios are not the only indicator of market froth.
    Ron Insana, CNBC, 9 Dec. 2024
  • At its peak, the Japanese equity market traded at four times the price-earnings ratio of the American market.
    Andrew Stuttaford, National Review, 2 Sep. 2020
  • 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
  • Low price-earnings ratios are the first, best indicators for selection of value.
    John Navin, Forbes, 23 Dec. 2024
  • The reduced target is result of a decline in the company’s margins, and a cap imposed by Chinese authorities on price-earnings ratios in IPOs.
    Fortune, 29 May 2018
  • Comparing a company’s price-earnings ratio to the industry may help reveal whether the company is a bargain.
    Charles Rotblut, Forbes, 10 Nov. 2021
  • The diminished threat of a recession should keep investors willing to pay relatively high price-earnings ratios.
    Washington Post, 19 Dec. 2019
  • For investors seeking long-term plays, Wolfe Research compiled a list of stocks with second quintile dividend yields — meaning their payouts land between 60% and 80% of the highest — and low price-earnings ratios.
    Darla Mercado, Cfp®, CNBC, 22 May 2025
  • In the street’s view, Crown Holdings is a reasonable business at a reasonable valuation (19 price-earnings ratio).
    Michael Khouw, CNBC, 10 Oct. 2024
  • By comparison, Google’s parent, Alphabet, boasts a price-earnings ratio of 21, with Amazon at 38.
    Washington Post, 2 May 2022
  • 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
  • Rising earnings, boosted by last year’s corporate tax cuts, have helped justify rich multiples and in some cases brought price-earnings ratios down.
    Michael Wursthorn, WSJ, 21 Oct. 2018
  • Tesla’s high price-earnings ratio doesn’t deter its most ardent believers.
    Subrat Patnaik, Fortune, 21 Apr. 2022
  • 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
  • With low-risk bonds paying so little interest, investors have poured money into stocks and other risky assets—driving the price-earnings ratio of U.S. stocks to the range of 20 to 25, substantially above their historic average.
    Robert Pozen, Fortune, 29 July 2019

Some of 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.

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