Price Earnings Ratio

A price earnings ratio (P/E ratio) is a financial metric used to determine the relative value of a company's stock. It compares the current market price of a stock to the company's earnings per share (EPS).

Sample sentences:

• The price earnings ratio for XYZ Company is 15, which indicates that investors are willing to pay 15 times the company's earnings for one share of stock.
• A low price earnings ratio suggests that a company's stock is undervalued, whereas a high P/E ratio may indicate it is overvalued.
• When analyzing investment options, it is important to consider the price earnings ratio of different companies.

Related products on Amazon:

• Stock Investing Books
• Financial Analysis Tools
• Investment Guides