What is the P E Ratio?

Answer

The P/E ratio or price-earnings ratio, is the market value of a company's stock per share divided by its earnings per share (EPS). For example, if the market value of a stock is $50 and its EPS is $2, then its P/E ratio is $50/$2=$25.

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Price–earnings ratio

The price-to-earnings ratio, or P/E ratio, is an equity valuation multiple. It is defined as market price per share divided by annual earnings per share. More »

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Q&A Related to "What is the P E Ratio?"

What is P E Ratio?

A P/E ratio stands for the price/earnings ratio. It is the ratio of a stock price compared to its earnings per share. It is calculated by dividing the stock price by the earnings

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what is a good p e ratio?

An average P/E, or price to earnings ratio, is 15-25. The higher the number the better, so I wouldn't go below that range. However, this can vary widely from industry to industry,

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what does p/e ratio mean?

If stock in a company happens to be trading at $100 a share, and the company has had earnings of $8 per share over the last year (four quarters), then the P/E ratio is 12.5, because

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what is a p/e ratio of a stock?

The P/E ratio is just that: how much does the stock cost compared to how much a company has earned. There are two ways to calculate the P/E ratio for a stock. You can divide the market

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