P/E Ratio

The ratio of a company's share (stock) price to the company's earnings per share.

Ryan John Barcelona avatar
Written by Ryan John Barcelona
Updated over a week ago

The price-earnings ratio, also known as P/E ratio, P/E, or PER, is the ratio of a company's share (stock) price to the company's earnings per share. The ratio is used for valuing companies and to find out whether they are overvalued or undervalued.

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