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Glossary   >   P   >   "P/E" Definition            P/E See: Price/Earnings ratio. Price/Earnings Ratio. Calculated by dividing the market price of a company"s ordinary shares by its earnings per share figure. The ratio reflects the market"s expectation of the future earnings of a company in relation to its current earnings; in other words, its performance potential. Glossary    Dictionary Search (powered by Google) WWW ITLOCUS.COM GLOSSARY.ITLOCUS.COM Translate a web page (powered by Google)      to German Spanish French Italian Portuguese Japanese Korean Chinese

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P/E \ See: Price/Earnings ratio.

Price/Earnings Ratio. Calculated by dividing the market price of a company"s ordinary shares by its earnings per share figure. The ratio reflects the market"s expectation of the future earnings of a company in relation to its current earnings; in other words, its performance potential.