P/E Ratio (Price-to-Earnings)
Earnings & Fundamentals
The price-to-earnings ratio (P/E ratio) is the ratio of a company's share price to its earnings per share. It is calculated by dividing the current stock price by the EPS.
P/E tells you how much investors are willing to pay for every dollar of earnings. A high P/E can signal expected growth — or overvaluation.
Further reading: Wikipedia
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