| You are here: | About>Business & Finance>Stocks> Glossary> P> Price Earnings Ratio |
![]() | Stocks |
"Price Earnings Ratio"Definition: The price/earnings ratio (P/E) is a way to show how a companys earnings relate to the stock price. The P/E is calculated by dividing the current price of the stock by the annual earnings per share. The higher the P/E the more earnings growth investors are expecting and the higher premium they are willing to pay for that anticipated growth.
|
|
All Topics | Email Article | | | ![]() |
| Advertising Info | News & Events | Work at About | SiteMap | Reprints | Help | Our Story | Be a Guide |
| User Agreement | Ethics Policy | Patent Info. | Privacy Policy | ©2008 About, Inc., A part of The New York Times Company. All rights reserved. |


