P/E

Earnings multiple ratio

P/E is the price-to-earnings ratio, a measure of stock valuation calculated by dividing share price by earnings per share.

A high P/E suggests investors expect future growth; a low P/E may indicate undervaluation or poor prospects.

The stock trades at a P/E of 25.

Tech companies often have higher P/Es than utilities.

valuation

ratio

Comparative numerical relation

valuation · overvalued · undervalued · cheap · expensive · growth · value · forward · trailing · TTM

analysis

earnings

Money gained from work

  • EPSCompany profit per share
  • dilutedMade weaker by adding liquid
  • GAAPFinancial reporting conventions

adjusted · normalized · cyclical · CAPE · growth · sustainable · quality · forecast · analyst · estimate

comparison

benchmark

Standard for comparison

market · index · average · historical · relative · comparable · screening · ranking · filter · quartile

Categories
Opposites
valuation metric type

P/Edividend yield

Distribution as price percentage

yield

earnings vs. other fundamentals

P/Eprice-to-book

Market cap divided by equity

book value

Phrases
Family

price

Familiarity
Top 500,000
Profile
Used worldwide · Timeless · Abstract · Rated G