price-to-earnings ratio
1
7.2
- noun
- /praɪs tu ˈɜrnɪŋz ˈreɪʃioʊ/
- Specialized
:
ratio precio-beneficio
- The company's price-to-earnings ratio indicates whether its shares are overvalued or undervalued in the market.
- average price-to-earnings ratio
- high price-to-earnings ratio
- low price-to-earnings ratio
Instead, we'll probably return closer to their previous price to earnings ratio, which was eight.
- Instead, we'll probably return closer to their previous price to earnings ratio, which was eight.
Examples
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An investor should consider a stock's price-to-earnings ratio when deciding whether to buy its shares.
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Instead, we'll probably return closer to their previous price to earnings ratio, which was eight.
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The author finds that every firm experiencing a name change also experiences an increase in its price-to-earnings ratio.
Academic text (2016) -
The average price-to-earnings ratio (P/E ratio) amounts to 22.67 and the forward P/E ratio is 16.62.
Blog text (4) -
We compare the short-term predictability of total payout yields with other valuation measures, such as the dividend yield and the price-to-earnings ratio.
Academic text (2017) -
The first set of columns in Table 4 shows the regression results for simple valuation ratios, such as the price-to-earnings ratio (P/E), dividend yield, total yield, and net total yield.
Academic text (2017) -
The cyclically adjusted price-to-earnings ratio (CAPE) is the price divided by the 10-year average of the real earnings per share from the Shiller dataset.
Academic text (2017) -
Its price is around 2.3 times earnings, lower than GM's 8.8, Toyota's 17.3, and Honda's 14.4 price-to-earnings ratios.
Blog text (9) -
Many analysts believe that a low price-to-earnings ratio can signal a good investment opportunity.
Synonyms
3
6.4
A number that compares a company's share price with the profit it makes for each share
Surface Forms
Morphology
price-to-earnings + ratio
The phrase literally names a numeric relation: the ratio of a price to earnings. A B1 learner who knows 'price', 'earnings' and 'ratio' can compose these meanings to infer it measures price relative to earnings; the hyphenated 'X-to-Y ratio' pattern is a regular, cross-linguistic composition used to form such technical measures.
Etymology
Price-to-earnings ratio comes from a simple idea: compare the price of one share with the company's earnings per share. Think of buying a small shop — the ratio tells you how many years of its profit would pay back the price, so it helps show a share's 'value'.