Qwoter Investment Advice

A B C D E F G H I J K L M N O P Q R S T U V W X Y Z #

Price-Earnings Ratio


(P/E) Ratio: A tool for comparing the prices of different common stocks by assessing how much the market is willing to pay for a share of each corporation's earnings.
Additional Comments: It is calculated by dividing the current market price of a stock by the earnings per share. A stock's PE is a very subjective number and is directly comparable to other companies that provide the same product or service. To compare General Electric to Intel would be an unfair comparison; they do completely different things. For the most part, the company you are considering should have a PE that is lower than that of other comparable companies.

Related Terms:
		Earnings Per Share Progression Look at the last four quarters of EPS growth to see if the company's earning capacity ... Growth Stocks Growth stocks are issued by companies expected to have sustained high rates of growth in sales ... Price to Sales Per dollar of shareholder value, how much business does this company generate? Price to sales (P/S) ...

« View the Stock Market Dictionary »

Latest Financial Advice

Free Investment Advice

Get free stock market tips and investing advice by subscribing to our newsletter:

* Your information will not be shared or sold.

Recommended Reading

Recommended Sites

All material is for informational purposes only and Qwoter is not responsible for any errors or omissions. The information is subject to change without notice and should
not be construed as definitive investment advice or recommendations. Please consult your tax or legal advisor(s) for questions concerning your personal or financial situation.