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Define price earnings ratio.

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Define price earnings ratio.

Accounting ratio

An accounting ratio is a financial measurement and tool to measure the financial and operational ability, it also helps to analyzing and comparing the financial performance of different business entities.

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The Price-earnings ratio is a measurement ratio that measures the relationship between the per-share price with respect to the return generated by per...

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The Price-Earnings Ratio: Definition, Formula, and Analysis

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Chapter 13 / Lesson 5
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Learn about the commonly used price to equity (P/E) ratio. Understand the formula for calculating the P/E ratio and the ratio's applications in stock valuation.


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