Definitions for

**"Price Earnings Ratio"****Related Terms:**Price/earnings ratio, Price-earnings ratio, P/e ratio, Price-to-earnings ratio, P/e, Pe ratio, Price to earnings ratio, Earnings yield, Price/earning ratio, Per, Dividend yield, Price-to-sales ratio, Price/sales ratio, Growth stocks, Peg ratio, Multiple, Value stock, Value stocks, Diluted earnings per share, Earnings per share, Growth stock, Price-to-book ratio, Price/book ratio, Price to book ratio, Total shareholder return, Basic earnings per share, Market capitalization, Peg, Dilution, Income stocks, Market cap, Primary earnings per share, Tsr, Capitalization, Overvalued, Return on common equity, Share price, Book value per share, Capitalisation, Indicated yield, Market capitalisation, Fully diluted earnings per share, Income stock, Dividend per share, Penny shares, Yield advantage, Small-cap stocks, Penny stock, P/b ratio, Stock split

A ratio used by some investors to gauge the relative value of a security in light of current market conditions. Ratio = Market Price divided by Earnings per Share.

Price of a stock divided by earnings per share.

Comparison of market price of a share of stock to the earnings per share of that stock expressed as a ratio

the ratio of a public company's price per share and its net income after taxes on a per share basis.

P/E ratio means price-to-earnings ratio or simply the current price divided by the earnings per share. P/E is valuation shorthand that allows investors to quickly see how much the market is currently paying for $1 of annualized earnings. When a stock is selling for a value of 30 times its last four quarters of earnings, it is said to be selling at a "30 multiple." The higher the P/E ratio a company commands, the higher the expectations for future rates of growth.

The ratio of the price of a stock to the earnings per share. Or total annual profit divided by the number of shares outstanding.

Market Price / Earnings The current market price, divided by the earnings per share gives the price to earnings ratio. It signifies the number of times of earnings the market is willing to pay to be part of the company's fortunes.

(P/E Ratio) The P/E ratio is a measure of the valuation of a company, based on the level of confidence investors have in the company (rightly or wrongly). Generally, the higher the figure, the higher the confidence. It is worked out by dividing the current share price by the last published Earnings Per Share. (See EPS)

Price of a stock divided by its earnings share. The P/E ratio may either use the reported earnings from the latest year (called a trailing P/E) or employ an analyst's forecast of next year's earnings (called a forward P/E).

PER is a company's current market share price divided by the earning per share for the previous year (or an estimate of the forthcoming year). In general companies with a high rate of growth tend to have high PERs, while those with low rates of growth have low PERs. This ratio is an important investment indicator. Investors should seek investment opportunities in companies with low PERs as they generally provide high returns, while avoiding high PER companies. Within this context, the market PER acts as guide on the direction of the market as a whole. For instance, when the market is performing well, because of an upward price trend, it pulls up the market PER and then each company's PER.

The market price of a common share divided by its earnings per share for one year. (This ratio reflects what investors think of the corporations earnings' potential)

A measure of the attractiveness of a particular security or trust listed on the stock exchange – a higher price earnings ratio means investors are prepared to pay a higher price for the security or trust because of the anticipated future growth in the earnings of the investment. It is calculated by dividing the price of a share or trust by its current earnings.

A measure of how a share price is valued in relation to a company's earnings and is calculated by dividing the company's share price by its earnings per share.

See P/E Ratio or PER

Calculated as price per share divided by earnings per share. The price per share (numerator) is the market price of a single share of the stock. The Earnings per share (denominator) is the Net Income of the company for the most recent 12 month period, divided by number of shares outstanding.

The relationship between the market value of the stock and the earnings of a company. It is obtained by dividing price per share by the earnings per share.

P/E Ratio. A valuation of a companies current share price compared to it per-share earnings. Calculated as Market Value per share/ Earnings Per Share.

This is the measure of share prices. The price per share of stock is divided by the earnings per share. The price is the market price of a single share while the earnings are the income of the company for 12 months.

The current share price divided by earnings per share.

The closing share price on the JSE Securities Exchange South Africa divided by earnings per ordinary share.

A favourite technique for valuing shares is to calculate the price earnings ratio (PER) by dividing the share price by earnings per share. The higher the PER, the more highly valued the shares. Simplistic price earnings ratio comparisons are not very helpful in finding cheap shares, since there are usually good reasons why one share is lower-rated than another, for example, because the business is riskier or growing more slowly.

The ratio of the stock's price to the earnings per share.

A ratio used to evaluate the relationship between a company's price per share and the earnings per share (EPS). For example, if a company's stock is selling for $12 per share and the earnings per share is $2, the P/E ratio is 6 (12 ÷ 2 = 6).

Figure obtained by dividing the earnings per share into the current market price of the share. The PE ration shows the number of times the market price covers earnings and is a valuable tool for comparing profit performance relative to price.

( P/E) Trailing P/E - The stock price divided by the last four quarters (12 months) of the company's earnings. The "trailing P/E" is what most news publications show as the P/E. Median P/E - The average annual P/E of a stock over the last 10 year period.

This is the value of a share divided by the expected profit on each share. It is often used to assess how a share has been valued. In General a high P/E forecast ratio indicates high projected earnings in the future

Price divided by earnings per share. Literally, means the ratio of a company's stock price to the trailing twelve months' earnings per share. The standard prism by which Old Economy stock pickers attempt to value or "discount" the future earnings of a company. The higher the P/E ratio a company commands, the higher the expectations for future rates of growth.

The market price of a share divided by the companyâ€(tm)s earnings(profits) per share in its latest 12 month trading period.

A price earnings ratio (often referred to as a PE ratio or PER) is a measure of the level of confidence investors have in a company. The PE ratio is calculated by dividing the current share price by the last published earnings per share (net profit divided by the number of ordinary shares). Generally the higher the figure is, the higher the confidence.

The market price of a common share divided by its earnings per share for 12 months.