PRICE-EARNINGS RATIO

By SovConn | July 27, 2014

price-earnings ratio. The ratio between a stock’s current share price and the corporation’s earnings per share for the last year. • Some investors avoid stocks with high price-earnings ratios because those stocks may be overpriced. — Abbr. P/E ratio. Cf. earnings yield under YIELD.

[Blacks Law 8th]

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