Pe ratio meaning: The price-to-earnings ratio

The price-to-earnings ratio , or P/E ratio , helps you compare the price of a company’s stock to the earnings the company generates. This comparison helps you understand whether markets are ... Learn how to calculate and interpret the P/E ratio , which is the relationship between a company's stock price and earnings per share. Find out the types, uses and limitations of this valuation tool and see examples of high and low P/E stocks. Learn what the P\\/E ratio means, how to calculate it, and how to use forward, trailing, and PEG ratios to judge if a stock is under- or overvalued. The PE Ratio ( Price-to-Earnings ) is a commonly used valuation metric for stocks. It is calculated by dividing the stock price with the earnings per share.