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
These examples are automatically compiled from online sources to illustrate current usage. Opinions expressed in the examples do not represent those of Merriam-Webster or its editors. Send us feedback about these examples.
The stock trades with a price-earnings ratio of 15.47. John Navin, Forbes, 23 Oct. 2024 Since there are no recent earnings, Sasol has no price-earnings ratio. John Navin, Forbes, 23 Oct. 2024 The price-earnings ratio for the ETF is 14.30, significantly lower than that of the S&P 500 which has a Shiller p/e of 37.22. John Navin, Forbes, 10 Oct. 2024 In the street’s view, Crown Holdings is a reasonable business at a reasonable valuation (19 price-earnings ratio). Michael Khouw, CNBC, 10 Oct. 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 14 Nov. 2024.

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