What is the definition of Price/earnings (p/e) ratio? | Dictionary.net

PRICE/EARNINGS (P/E) RATIO

\pɹˈa͡ɪs slˈaʃ ˈɜːnɪŋz pˈiː slˈaʃ ˈiː ɹˈe͡ɪʃɪˌə͡ʊ], \pɹˈa‍ɪs slˈaʃ ˈɜːnɪŋz pˈiː slˈaʃ ˈiː ɹˈe‍ɪʃɪˌə‍ʊ], \p_ɹ_ˈaɪ_s s_l_ˈa_ʃ ˈɜː_n_ɪ_ŋ_z__ p_ˈiː s_l_ˈa_ʃ ˈiː__ ɹ_ˈeɪ_ʃ_ɪ__ˌəʊ]\

Definitions of PRICE/EARNINGS (P/E) RATIO

1910 - Black's Law Dictionary (2nd edition)

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A companies value based on previous earnings. It is used to evaluate performance and decide stock prices. AKA multiple.

1910 - Black's Law Dictionary (2nd edition)
By Henry Campbell Black

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