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 Pink Sheets:
- Examples Refers to over-the-counter trading. Daily publication of the national quotation bureau that reports the bid and ask prices of thousands of OTC stocks, as well as the market makers who trade each stock price-earnings ratio definition.
- Definition Personal Tax View (Of Capital Structure):
- Examples The argument that the difference in personal tax rates between income from debt and income from equity eliminates the disadvantage of the double taxation (corporate and personal) of income from equity price-earnings ratio explain.
- Definition Perpetual Bond:
- Examples Nonredeemable bond with no maturity date that pays regular interest rates indefinitely price-earnings ratio what is.
- Definition PERLS:
- Examples Principal Exchange-Rated-Linked Securities price-earnings ratio meaning.
- Definition Package Mortgage:
- Examples A mortgage on a house and property in the house price-earnings ratio abbreviation.
