Articles on: Investment Glossary

Price-Earnings Ratio (P/E)

A popular way to compare stocks selling at various price levels. The P/E ratio is the price of a share of stock divided by earnings per share for a twelve-month period. For example, a stock selling for $50 per share and earning $5 per share is said to be selling at a price-earnings ratio of 10.

Updated on: 24/04/2023

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