price to earnings ratio (P/E)
A measure of a company's relative market value, calculated by dividing the price per share by net earnings. A lower P/E when compared to other companies in the same industry can indicate that the security may be currently undervalued in the market. See value investing.
Browse by Subjects
price to cash flow ratio
bubble
overvalued
value investing
forward P/E
See All Related Terms »

portfolio theory
balanced fund
specialist display book
taxpayer
cost absorption