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
Examples are automatically compiled from online sources to show current usage. Read More Opinions expressed in the examples do not represent those of Merriam-Webster or its editors. Send us feedback.
This record level of ownership creates a lockstep movement between the price-earnings ratio of the S & P 500 and the retail flow into the market. Yun Li, CNBC, 20 Mar. 2025 The stock trades with a price-earnings ratio of 54. John Navin, Forbes, 16 Mar. 2025 Its price-earnings ratio of 37 is about the same as that of the S&P 500. John Navin, Forbes, 8 Mar. 2025 The oil and gas exploration company trades with a price-earnings ratio of 17.90 at 1.66 times its book value. John Navin, Forbes, 20 Jan. 2025 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

Browse Nearby Words

Cite this Entry

“Price-earnings ratio.” Merriam-Webster.com Dictionary, Merriam-Webster, https://www.merriam-webster.com/dictionary/price-earnings%20ratio. Accessed 31 Mar. 2025.

Last Updated: - Updated example sentences
Love words? Need even more definitions?

Subscribe to America's largest dictionary and get thousands more definitions and advanced search—ad free!