What is PRICE/EARNINGS (P/E) RATIO?

A companies value based on previous earnings. It is used to evaluate performance and decide stock prices. AKA multiple.

More On This Topic



Link to This Definition
Did you find this definition of PRICE/EARNINGS (P/E) RATIO helpful? You can share it by copying the code below and adding it to your blog or web page.
Written and fact checked by The Law Dictionary