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

PRICE/EARNINGS (P/E) MULTIPLE

\pɹˈa͡ɪs slˈaʃ ˈɜːnɪŋz pˈiː slˈaʃ ˈiː mˈʌltɪpə͡l], \pɹˈa‍ɪs slˈaʃ ˈɜːnɪŋz pˈiː slˈaʃ ˈiː mˈʌltɪpə‍l], \p_ɹ_ˈaɪ_s s_l_ˈa_ʃ ˈɜː_n_ɪ_ŋ_z__ p_ˈiː s_l_ˈa_ʃ ˈiː__ m_ˈʌ_l_t_ɪ_p_əl]\

Definitions of PRICE/EARNINGS (P/E) MULTIPLE

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

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An indicator of the undervaluation or overvaluation of a stock. It is the product of earnings per share and the price of one single share.

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

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