P/E ratio
/piː iː ˈreɪʃioʊ/
price-to-earnings ratio — the price of a stock divided by its annual earnings per share
P/E ratio in a sentence
“At a P/E ratio of 40, the stock was priced for aggressive future growth.”
Origin of P/E ratio
Price from Latin pretium value + earnings from Old English earnian to merit
Related Words
short squeeze
a rapid price increase that forces short sellers to buy back shares at a loss, accelerating the rise
market order
an instruction to buy or sell a security immediately at the best available current price
diversification
spreading investments across different assets, sectors, or geographies to reduce risk
drawdown
the peak-to-trough decline in a portfolio's value during a specific period
risk-reward ratio
the expected profit of a trade compared to its potential loss, used to evaluate trade quality
stop-loss order
an order to sell a security automatically when it reaches a specified price, limiting downside loss