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    ltheron40's Avatar
    ltheron40 Posts: 1, Reputation: 1
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    #1

    Nov 12, 2011, 10:30 AM
    Another term for the price/earnings ratio is
    Another term for the price/earnings ratio is?
    dstyers's Avatar
    dstyers Posts: 4, Reputation: 1
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    #2

    Dec 4, 2011, 07:09 PM
    The price/ earnings ratio is a valuation ratio of a company's current share price compared to its per-share earnings.

    Calculated as:

    Market Value per Share/
    Earnings per Share (EPS)

    For example, if a company is currently trading at $43 a share and earnings over the last 12 months were $1.95 per share, the P/E ratio for the stock would be 22.05 ($43/$1.95). It is also sometimes known as "price multiple" or "earnings multiple".


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