What is the meaning of Price earnings ratio (PE ratio)?

Price earnings ratio (PE ratio) is the ratio of a public company's price per share and its net income after taxes on a per share basis.

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APABarry Goldsmith. (2010). Price earnings ratio (PE ratio). Retrieved September 29, 2026, from http://smartdefine.org/price_earnings_ratio_(pe_ratio)/definitions/1161034
ChicagoBarry Goldsmith. 2010. "Price earnings ratio (PE ratio)" http://smartdefine.org/price_earnings_ratio_(pe_ratio)/definitions/1161034 (accessed September 29, 2026).
HarvardBarry Goldsmith 2010, Price earnings ratio (PE ratio), Smart Define, viewed 29 September, 2026, <http://smartdefine.org/price_earnings_ratio_(pe_ratio)/definitions/1161034>.
MLABarry Goldsmith. "Price earnings ratio (PE ratio)" 21 October 2010. Web. 29 September 2026. <http://smartdefine.org/price_earnings_ratio_(pe_ratio)/definitions/1161034>