Financial Definition of Price/Earnings Ratio
Meaning of 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 is 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.
Related Entries of Price/Earnings Ratio in the Encyclopedia of Law Project
Browse or run a search for Price/Earnings Ratio in the American Encyclopedia of Law, the Asian Encyclopedia of Law, the European Encyclopedia of Law, the UK Encyclopedia of Law or the Latin American and Spanish Encyclopedia of Law.
Price/Earnings Ratio in Historical Law
You might be interested in the historical meaning of this term. Browse or search for Price/Earnings Ratio in Historical Law in the Encyclopedia of Law.
Legal Abbreviations and Acronyms
Search for legal acronyms and/or abbreviations containing Price/Earnings Ratio in the Legal Abbreviations and Acronyms Dictionary.
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| Price/Earnings Ratio in the Dictionary | Price/Earnings Ratio in our legal dictionaries |
| Related topics | Browse topics from the World Wiki Encyclopedia of Law |
| Browse the Legal Thesaurus | Find synonyms and related words of Price/Earnings Ratio |
| Legal Maxims | Maxims are established principles that jurists use as interpretive tools, invoked more frequently in international law |
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| Related topics | Price/Earnings Ratio in the World Encyclopedia of Law |
What is Price/Earnings Ratio?
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| https://legaldictionary.lawin.org/priceearnings-ratio | The URI of Price/Earnings Ratio (more about URIs) |
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