P/E Ratio

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  •  The price-earnings ratio, also known as P/E ratio, P/E, or PER, is the ratio of a company’s share price to the company’s earnings per share.
  • The price-to-earnings ratio (P/E ratio) is the ratio for valuing a company that measures its current share price relative to its per-share earnings (EPS).
  • The price-to-earnings ratio is also sometimes known as the price multiple or the earnings multiple.
  • The ratio is used for valuing companies and to find out whether they are overvalued or undervalued.
  • It also indicates how the stock is valued in the market.