P/E ratio

NOUN
  1. (stock market) the price of a stock divided by its earnings
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How To Use P/E ratio In A Sentence

  • That valuation was much higher than the price-to-earnings ratio of 52 at Nasdaq-listed rival business-to-business search engine Global Sources Ltd. and the 177 P/E ratio of Chinese-language Internet-search provider Baidu. com Inc.Mr. Lai said he expects bargain hunters to sell the "overshot" Alibaba. com and use the funds to buy market laggards. Doubts on Alibaba.com?
  • However, the P/E ratio still retains considerable popularity among investors.
  • However, the P/E ratio still retains considerable popularity among investors.
  • Investor can earn excess yield from these firms only when the P/E ratio is lower than that of industry.
  • Conversely, a high P/E ratio is presumed to show that the market expects high and/or non-volatile earnings from the company.
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