Price-to-Earnings Ratio

One concept. Four tiers of command. Which do you speak?

Category: Finance

Foundational Lexiconstock price vs profit
Executive Parlanceearnings multiple
Scholarly Discoursecapitalized earnings valuation
Babel ZenithP/E Ratio
Origin: Securities Analysis

Etymology & Meaning

Stock price divided by earnings per share.

In the Boardroom

Assessing whether a stock is expensive relative to earnings.

Begin Your Ascent Master “P/E Ratio” and 100+ executive concepts. Free executive vocabulary audit — takes 3 minutes.

← Explore the full Executive Glossary