Price to Earnings (P/E)
Price to earnings ratio (P/E ratio) is a financial metric that measures a company's stock price relative to its earnings per share (EPS). It is one of the most frequently used and popular valuation methods used by investors to determine the fair price of a company's stock. The P/E ratio is calculated by dividing the company's current market price per share by its earnings per share (EPS) over the last 12 months or the year prior. The higher the P/E ratio, the more expensive the stock is considered to be, indicating that investors have high expectations for future earnings growth. Conversely, a lower P/E ratio is considered undervalued and signals that investors are not willing to pay a premium for the company's stock.
Additional Details
| Metric Name |
Type |
Default Period Type |
| price_to_earnings |
fin_metric |
FY |
| Data Format |
Display Format |
Unit |
| float |
number |
multiple |