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
undervalued
bubble
trailing P/E
price to cash flow ratio
value investing
See All Related Terms »

cash flow statement
movable property
split level investment trust
National Association of Purchasing Managers (NAPM)
variance