P/E

What does P/E stand for?

Price-earnings ratio

A financial acronym that represents the market price per share divided by annual earnings per share (EPS).

P/E is one of the most frequently used metrics. It is usually calculated using the EPS from the last four quarters, which is also known as trailing P/E. If the P/E uses the EPS from estimated earnings expected from the next four quarters, it is known as projected or leading P/E.

Example

"Our P/E was down from last year but we hope to bounce back in the next four quarters."

Related Slang

Usage

Last Updated: December 31, 2014

P/E definition

This page explains what the acronym "P/E" means. The definition, example, and related terms listed above have been written and compiled by the Slangit team.

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