Meaning PRICE-EARNINGS RATIO: Shows the multiple of earnings at which a stock sells. Determined by dividing current stock price by current earnings per share (adjusted for stock splits). Earnings per share for the P/E ratio are determined by dividing earnings for past 12 months by the number of common shares outstanding. Higher multiple means investors have higher expectations for future growth, and have bid up the stock's price
More terms such as Price-earnings ratio in Dictionary P.
- Definition Pass The Book:
- Examples The process of transferring responsibility for a brokerage firm's trading account from one office to another around the world in order to benefit from trading 24 hours a day price-earnings ratio definition.
- Definition Presidential Election Cycle Theory:
- Examples A theory that stock market trends can be predicted and explained by the four-year presidential election cycle price-earnings ratio explain.
- Definition Price Discovery Process:
- Examples The process of determining the prices of assets in the marketplace through the interactions of buyers and sellers price-earnings ratio what is.
- Definition Probability:
- Examples The relative likelihood of a particular outcome among all possible outcomes price-earnings ratio meaning.
- Definition Policyholder:
- Examples An individual who owns an insurance policy price-earnings ratio abbreviation.
