price to earnings (PE) ratio

Related Terms
Most common measure of how highly a firm's share is valued, it shows the premium the stockmarket puts on the stock of fast growth firms as compared with stock of those with sluggish growth-record. Formula: Market price of each share รท Earnings per share (EPS).

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If you want to be able to maximize your profits you need to set as good of a price to earnings ratio as you can.
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Our price to earnings ratio was a bit off and it did not make any sense to me, so I decided to just leave for the day.
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When you are deciding whether to continue making a product one of the most important things is the price to earnings ratio.
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