How to Use price-earnings ratio in a Sentence
price-earnings ratio
noun-
The stock trades at a 4% discount to its book value with a price-earnings ratio of 9.13.
—John Navin, Forbes, 11 Sep. 2024
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The startup-heavy ChiNext index trades at a price-earnings ratio of 45.
—Washington Post, 1 Apr. 2019
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The price-earnings ratio helps to keep your perspective in check.
—Charles Rotblut, Forbes, 26 May 2022
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Look at the price-earnings ratio, or P/E, which is the price of a stock divided by its earnings per share.
—Mark Hulbert, USA TODAY, 20 Mar. 2018
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The Nasdaq 100’s price-earnings ratio is about 5% above its average over the past decade.
—Ryan Vlastelica, Fortune, 31 Aug. 2022
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Jack in the Box , which runs Chipotle competitor Qdoba, has a price-earnings ratio of 19.
—Justin Lahart, WSJ, 9 Aug. 2017
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Since there are no recent earnings, Sasol has no price-earnings ratio.
—John Navin, Forbes, 23 Oct. 2024
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The price-earnings ratio is a common way of measuring a stock’s performance.
—Thomas Heath, Washington Post, 3 Aug. 2019
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The investment firm almost looks like a value stock at this point, now trading at just above its book value with a price-earnings ratio of just 7.98.
—John Navin, Forbes, 28 June 2022
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Apple has a price-earnings ratio--the ratio of its market valuation to its profits--of about 33.
—Arkansas Online, 22 Aug. 2020
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At its peak, the Japanese equity market traded at four times the price-earnings ratio of the American market.
—Andrew Stuttaford, National Review, 2 Sep. 2020
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The Value Grade is the percentile rank of the average of the percentile ranks of the valuation metrics mentioned above along with the price-earnings ratio, price-to-book-value ratio and price-to-free-cash-flow ratio.
—Charles Rotblut, Forbes, 10 June 2021
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The reduced target is result of a decline in the company’s margins, and a cap imposed by Chinese authorities on price-earnings ratios in IPOs.
—Fortune, 29 May 2018
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Comparing a company’s price-earnings ratio to the industry may help reveal whether the company is a bargain.
—Charles Rotblut, Forbes, 10 Nov. 2021
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The diminished threat of a recession should keep investors willing to pay relatively high price-earnings ratios.
—Washington Post, 19 Dec. 2019
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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
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By comparison, Google’s parent, Alphabet, boasts a price-earnings ratio of 21, with Amazon at 38.
—Washington Post, 2 May 2022
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But my research suggests that in the early 1920s, scarcely anyone, outside of investment professionals, knew what a price-earnings ratio was.
—Robert J. Shiller, New York Times, 16 Apr. 2021
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Rising earnings, boosted by last year’s corporate tax cuts, have helped justify rich multiples and in some cases brought price-earnings ratios down.
—Michael Wursthorn, WSJ, 21 Oct. 2018
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Tesla’s high price-earnings ratio doesn’t deter its most ardent believers.
—Subrat Patnaik, Fortune, 21 Apr. 2022
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Price-to-Sales Ratio The price-earnings ratio is ineffective at gauging the quality of companies with erratic earnings or no earnings at all.
—Charles Rotblut, Forbes, 29 Feb. 2024
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With low-risk bonds paying so little interest, investors have poured money into stocks and other risky assets—driving the price-earnings ratio of U.S. stocks to the range of 20 to 25, substantially above their historic average.
—Robert Pozen, Fortune, 29 July 2019
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Yet an important stock market yardstick — the price-earnings ratio — suggests investors have an almost unquestioning faith in Netflix’s ability to notch fast-growing earnings.
—Peter Eavis, The Seattle Times, 16 Oct. 2018
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Currently, Delta’s price-earnings ratio is not applicable due to negative earnings.
—Charles Rotblut, Forbes, 8 Apr. 2021
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The metal fabrication company, headquartered in Collierville, Tennessee, has a price-earnings ratio of 8.
—John Navin, Forbes, 22 Jan. 2022
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For example, changes in profits could be offset by widening or contracting price-earnings ratios; sentiment might offset valuation; returns tend to vary inversely with risk.
—Barry Ritholtz, latimes.com, 14 June 2018
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Currently, American Airlines’ price-earnings ratio is not applicable due to negative earnings.
—Charles Rotblut, Forbes, 8 Apr. 2021
Some of these examples are programmatically compiled from various online sources to illustrate current usage of the word 'price-earnings ratio.' Any opinions expressed in the examples do not represent those of Merriam-Webster or its editors. Send us feedback about these examples.
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