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P/E Financial Glossary

What is it? The Price earning ratio (P/E ratio). This expresses the current share price (P) as a multiple of the earnings per share (E). The P/E ratio is used as a measure of how much the investor is being asked to pay for the investment. It is a means of assessing both the value of the company and also its comparative value and attraction compared to other companies.

Finance Term Definition Added By: Kylie

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