price-earnings ratio

noun

price-earn·​ings ratio ˈprīs-ˈər-niŋz- How to pronounce price-earnings ratio (audio)
: a measure of the value of a common stock determined as the ratio of its market price to its annual earnings per share and usually expressed as a simple numeral

Examples of price-earnings ratio in a Sentence

Recent Examples on the Web
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The market cap is $19.90 billion and the price-earnings ratio is 16.54. John Navin, Forbes.com, 22 July 2025 The price-earnings ratio is 27 and the debt-to-equity ratio is .45. John Navin, Forbes.com, 12 July 2025 With a market cap of $3.37 billion, Flowers trades with a price-earnings ratio of 14.87. John Navin, Forbes.com, 18 June 2025 Without referencing the price-earnings ratio or other such fundamental metrics, how has the company been trading? John Navin, Forbes.com, 23 May 2025 See All Example Sentences for price-earnings ratio

Word History

First Known Use

1929, in the meaning defined above

Time Traveler
The first known use of price-earnings ratio was in 1929

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Cite this Entry

“Price-earnings ratio.” Merriam-Webster.com Dictionary, Merriam-Webster, https://www.merriam-webster.com/dictionary/price-earnings%20ratio. Accessed 29 Jul. 2025.

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