Price-to-Earnings (P/E) Ratio
A valuation ratio calculated by dividing a company's current share price by its earnings per share. It helps investors assess whether a stock is over- or undervalued.
Related terms
Dividend Yield
A financial ratio that shows how much a company pays in dividends each year relative to its stock price. It is calculated as annual dividends per share divided by price per share.
Market CapitalizationThe total value of a company's outstanding shares, calculated by multiplying the stock price by the number of shares outstanding. It is used to size companies.