How to Use price-earnings ratio in a Sentence

price-earnings ratio

noun
  • The startup-heavy ChiNext index trades at a price-earnings ratio of 45.
    Washington Post, 1 Apr. 2019
  • The price-earnings ratio helps to keep your perspective in check.
    Charles Rotblut, Forbes, 26 May 2022
  • 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
  • The Nasdaq 100’s price-earnings ratio is about 5% above its average over the past decade.
    Ryan Vlastelica, Fortune, 31 Aug. 2022
  • Jack in the Box , which runs Chipotle competitor Qdoba, has a price-earnings ratio of 19.
    Justin Lahart, WSJ, 9 Aug. 2017
  • The price-earnings ratio is a common way of measuring a stock’s performance.
    Thomas Heath, Washington Post, 3 Aug. 2019
  • 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
  • Apple has a price-earnings ratio--the ratio of its market valuation to its profits--of about 33.
    Arkansas Online, 22 Aug. 2020
  • 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
  • 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
  • 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
  • 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
  • The diminished threat of a recession should keep investors willing to pay relatively high price-earnings ratios.
    Washington Post, 19 Dec. 2019
  • By comparison, Google’s parent, Alphabet, boasts a price-earnings ratio of 21, with Amazon at 38.
    Washington Post, 2 May 2022
  • 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
  • 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
  • Tesla’s high price-earnings ratio doesn’t deter its most ardent believers.
    Subrat Patnaik, Fortune, 21 Apr. 2022
  • 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
  • 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
  • Currently, Delta’s price-earnings ratio is not applicable due to negative earnings.
    Charles Rotblut, Forbes, 8 Apr. 2021
  • The metal fabrication company, headquartered in Collierville, Tennessee, has a price-earnings ratio of 8.
    John Navin, Forbes, 22 Jan. 2022
  • 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
  • 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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