word
price-to-earnings ratio
PRYS too ER-ningz RAY-shee-oh
praɪs tuː ˈɜːrnɪŋz ˈreɪʃioʊListen
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Syllable breakdown
pricetoearningsratio
Dictionary meaning
valuation metric comparing a company's share price to its earnings per share; a high P/E suggests investors expect strong future growth; a low P/E may indicate undervaluation or poor growth prospects
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