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What does price-to-earnings ratio mean?

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price-to-earnings ratio
(PER; P/E)
Noun

One of the most popular equity multiples used by financial analysis showing the market’s valuation of a company for a period relative to its earnings per share for the period.

Synonym(s): 
  • P/E ratio; PE ratio; earnings multiple; price-earnings ratio; price/earnings ratio.
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