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

valuation of a business
interest rate parity
multiplication sign
labour market
carriage paid