Here, Telegraph Money explains what the price-to-earnings ratio is, and demonstrates how to work it out via a worked example.

Put simply, price-earnings ratio, or P/E ratio, is a figure that compares the price of a share of a company’s stock to the earnings per share it posts over a 12-month period.

Commissions do not affect our editors' opinions or evaluations. The price-to-earnings ratio, or P/E ratio, helps you compare the price of a company’s stock to the earnings the company generates.

Learn about our editorial policies The price-to-earnings (P/E) ratio ranks among Wall Street's most quoted statistics, revealing how much investors pay for each dollar of a company's profits.

This article explains the price-to-earnings-to-growth (PEG) ratio. The PEG ratio is a metric investors use to determine the value of a stock. It compares a company’s price-to-earnings ratio to ...

The Price/Earnings Ratio (or PE Ratio) is a widely used stock evaluation measure. For a security, the Price/Earnings Ratio is given by dividing the Last Sale Price by the Average EPS (Earnings Per ...

If you are searching for value in the stock market, the price-to-earnings (P/E) ratio is a useful tool. A high P/E suggests a business is highly valued, while a low P/E indicates the stock may be ...

There will be numbers that get at the quality of earnings. For each ratio, we will display extreme ... for stock valuation is the P/E: share price divided by share earnings. It tells you how ...

The Price-to-Earnings (P/E Ratio) is a critical financial metric that investors use to evaluate a company's value. It provides a snapshot of what the market will pay for a company's earnings.

The forward price/earnings ratio measures value by dividing a stock's most recent price by next year's earnings per share estimate for the entire year. If that estimate is not available ...

What is the price-to-earnings ratio? The price-to-earnings ratio, commonly known as the P/E ratio, is a stock valuation measure. It can help you assess a company's current share price relative to its ...