price-earnings ratio

noun

price-earn·​ings ratio ˈprīs-ˈər-niŋz- How to pronounce price-earnings ratio (audio)
: a measure of the value of a common stock determined as the ratio of its market price to its annual earnings per share and usually expressed as a simple numeral

Examples of price-earnings ratio in a Sentence

Recent Examples on the Web
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The stock trades with a price-earnings ratio of 7 and at a 40% discount to its book value. John Navin, Forbes, 6 Jan. 2025 Low price-earnings ratios are the first, best indicators for selection of value. John Navin, Forbes, 23 Dec. 2024 Having said that, price-earnings ratios are not the only indicator of market froth. Ron Insana, CNBC, 9 Dec. 2024 There is no price-earnings ratio has there are no earnings. John Navin, Forbes, 11 Dec. 2024 See all Example Sentences for price-earnings ratio 

Word History

First Known Use

1929, in the meaning defined above

Time Traveler
The first known use of price-earnings ratio was in 1929

Dictionary Entries Near price-earnings ratio

Cite this Entry

“Price-earnings ratio.” Merriam-Webster.com Dictionary, Merriam-Webster, https://www.merriam-webster.com/dictionary/price-earnings%20ratio. Accessed 18 Jan. 2025.

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