price-earnings ratio

American

[prahys-ur-ningz rey-shoh, -shee-oh] / ˈpraɪsˈɜr nɪŋz ˌreɪ ʃoʊ, -ʃiˌoʊ /

Also P/E ratio

noun

the current price of a share of common stock divided by earnings per share over a 12-month period, often used in stock evaluation. P/E, p/e, PE, P-E, p-e

price-earnings ratio British

noun

P/E ratio. the ratio of the price of a share on a stock exchange to the earnings per share, used as a measure of a company's future profitability

"Collins English Dictionary — Complete & Unabridged" 2012 Digital Edition © William Collins Sons & Co. Ltd. 1979, 1986 © HarperCollins Publishers 1998, 2000, 2003, 2005, 2006, 2007, 2009, 2012

Etymology

Origin of price-earnings ratio

First recorded in 1960–65

Example Sentences

Examples are provided to illustrate real-world usage of words in context. Any opinions expressed do not reflect the views of Dictionary.com.

Shares trade for about 21 times estimated earnings expected over the coming 12 months, similar to the price-earnings ratio a year ago.

From Barron's

The forward price-earnings ratio was at the higher end of the range seen over the past three years.

From Barron's

Still, that price-earnings ratio has fallen from about 32 times at the start of the year, according to FactSet data.

From Barron's

With steady earnings and enhanced capital management, Telekom’s shares, trading at 2026 estimated price-earnings ratio of 13.0X and offering an expected 4.7% dividend yield in 2025, could have re-rating potential, he adds.

From The Wall Street Journal

Another frequently used metric is the Shiller cyclically-adjusted price-earnings ratio that, at 40, also stands at a 25-year high.

From MarketWatch

Definitions and idiom definitions from Dictionary.com Unabridged, based on the Random House Unabridged Dictionary, © Random House, Inc. 2023