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Price-to-Earnings (P/E) Ratio Definition

Sep 09, 2021· Price-Earnings Ratio - P/E Ratio: The price-earnings ratio (P/E ratio) is the ratio for valuing a company that measures its current share price relative to its per-share earnings. The price ...

P/E Ratio Primer: Why the Price to Earnings Ratio Is Crucial

Oct 16, 2019· Given the May 2018 price, that would result in a P/E multiple of 16.2. Yes, exactly average for the overall market. If you think Amazon's earnings might be on that kind of trajectory, maybe today's PE isn't so crazy after all. This is why it is difficult to say whether a …

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Price–earnings ratio - Wikipedia

The price-earnings ratio, also known as P/E ratio, P/E, or PER, is the ratio of a company's share (stock) price to the company's earnings per share. The ratio is used for valuing companies and to find out whether they are overvalued or undervalued. / = As an example, if share A is trading at $24 and the earnings per share for the most recent 12-month period is $3, then share A has a P/E ratio ...

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