P/E

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.

Added By: Kylie

Send To Friends!

If you'd like to send the P/E definition to yourself or to your friends/colleagues, just enter the e-mail addresses in the boxes below -

We hope you now understand the meaning of P/E. If you need any more information on this term, please don't hesitate to contact us.