Financial Dictionary

Financial Dictionary - definitons of investment, economic and financial terms

Atlantic Financial

Atlantic Financial

Investment Word

Price to Earnings Ratio (P/E)

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A Price to Earnings Ratio (P/E) is a measure of how much a company earns in relation to its total stock price. Some growth stocks have very high P/E ratios because investors believe more in the long term potential of the company than they care about the current earnings.

Price to Earnings Ration (P/E) - definition

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Price to Earnings Ratio