Meaning P/E RATIO: Current stock price divided by trailing annual earnings per share or expected annual earnings per share. Assume XYZ Co. sells for $25.50 per share and has earned $2.55 per share this year; $25.50 = 10 times $2.55. XYZ stock sells for ten times earnings
More terms such as P/E ratio in Dictionary P.
- Definition Price Compression:
- Examples The limitation of the price appreciation potential for a callable bond in a declining interest rate environment, based on the expectation that the bond will be redeemed at the call price p/e ratio definition.
- Definition Position Building:
- Examples Buying shares to build up a long position or selling shares to create a short position in a particular security or group of securities p/e ratio explain.
- Definition Provisional Call Feature:
- Examples convertible issue that allows the issuer to call the issue during the noncall period if the price of the stock reaches a certain level. In the case of convertible securities, right of an issuer to p/e ratio what is.
- Definition Plowback Rate:
- Examples Related: Retention rate p/e ratio meaning.
- Definition Plow Back:
- Examples To reinvest earnings in a business rather than pay out them out as dividends. Common practice in high-growth companies p/e ratio abbreviation.
