Definitions for "price/earnings ratio"
Keywords:  earns, eps, trailing, divide, twelve
price/earnings ratio. The most common measure of how expensive a stock is. The...
The price of a share of a stock divided by earnings per share, usually calculated using the latest year's earnings. The p/e ratio is also called the multiple.
A measurement of a companyâ€(tm)s rating, calculated by dividing the share price by the annual earnings per share. A high P/E ratio means the company is highly-rated by the stock market, suggesting that investors think its prospects are good.