What is P/E ratio?P/E Ratio
Share price ÷ earnings per share: what you pay for each $1 of annual profit; a high P/E means the market expects faster growth.
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- Fundamental AnalysisPrice-to-Book and Dividend Yield
P/B shows how much you pay for each $1 of net assets; dividend yield shows how much cash you get back each year. Read both alongside ROE and the payout ratio so you don't fall into a "cheap" trap.
- Fundamental AnalysisThe P/E Ratio: Expensive or Cheap?
Share price ÷ earnings per share = P/E ratio: how much you're willing to pay for each $1 of annual profit. A high P/E is buying expectations of growth.
Related terms
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Go to “Price-to-Book and Dividend Yield”