price to earnings (PE) ratio
Definition
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 ÷ Earnings per share (EPS).
price to earnings (PE) ratio is in the Accounting & Auditing, Banking, Commerce & Finance, Investing and Securities & Futures Trading subjects.
price to earnings (PE) ratio appears in the definitions of the following terms: price/earnings (P/E) ratio, pre-money valuation, profitability, price to earnings growth (PEG) ratio, earnings yield and growth investing
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