price-to-earnings ratio (Meaning)
Wordnet
price-to-earnings ratio (n)
(stock market) the price of a stock divided by its earnings
Synonyms & Antonyms of price-to-earnings ratio
No Synonyms and anytonyms found
price-to-earnings ratio Sentence Examples
- The company's price-to-earnings (P/E) ratio is currently 25, indicating it is overvalued compared to its earnings potential.
- Investors often use the price-to-earnings ratio as a metric to assess the relative value of stocks.
- A higher P/E ratio suggests that investors are willing to pay a higher price for each dollar of earnings.
- Growth companies typically have higher price-to-earnings ratios due to their perceived future potential.
- The price-to-earnings ratio can be a useful indicator of a company's intrinsic value.
- When comparing companies, it is important to consider their industry and competitive landscape before evaluating their price-to-earnings ratios.
- A company's P/E ratio can fluctuate significantly over time as earnings and market sentiment change.
- Some investors use the price-to-earnings ratio to screen for potential investment opportunities.
- It is essential to consider both quantitative and qualitative factors when analyzing a company's price-to-earnings ratio.
- The price-to-earnings ratio is a commonly used financial metric that can provide insights into a company's valuation and growth prospects.
FAQs About the word price-to-earnings ratio
(stock market) the price of a stock divided by its earnings
No synonyms found.
No antonyms found.
The company's price-to-earnings (P/E) ratio is currently 25, indicating it is overvalued compared to its earnings potential.
Investors often use the price-to-earnings ratio as a metric to assess the relative value of stocks.
A higher P/E ratio suggests that investors are willing to pay a higher price for each dollar of earnings.
Growth companies typically have higher price-to-earnings ratios due to their perceived future potential.
