For term searches and specialty glossaries, please try the new GBK glossariesEnglish to Arabic translations [PRO] Bus/Financial - Investment / Securities Additional field(s): Economics, Finance (general) | | English term or phrase: price to earnings ratio | Definition from investing-school.com : The price to earnings ratio (denoted P/E) measures the relationship between the share price to its earnings per share. It is considered one of the most important metric of a company because comparing two similar companies’ P/E shows us which is a better value.
Example sentence(s): - By analyzing the price-to-earnings ratio, investors can evaluate a company's shares within the context of actual income the company has generated over a certain period. investment.suite101.com
 - A measure of the price-to-earnings ratio (P/E) using forecasted earnings for the P/E calculation. While the earnings used are just an estimate and are not as reliable as current earnings data, there is still benefit in estimated P/E analysis. answers.com
 - Graham sets the magic number of <15 as an ideal price to earnings ratio. I would argue that this number is a guide. Some sectors have ridiculously low P/E ratios, others have ridiculously high ratios. It is worthwhile to have a look at sector numbers before getting too excited about a company. traderplanet.com

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