Current stock price divided by trailing annual earnings per share or expected annual earnings per share. Assume XYZ Co. Sells for $25. 50 per share and has earned $2. 55 per share this year; $25. 50 = 10 times $2. 55. XYZ stock sells for ten times earnings.
Barry Goldsmith
| APA | Barry Goldsmith. (2010). p/e ratio. Retrieved October 1, 2026, from http://smartdefine.org/p%2Fe_ratio/definitions/1160086 |
| Chicago | Barry Goldsmith. 2010. "p/e ratio" http://smartdefine.org/p%2Fe_ratio/definitions/1160086 (accessed October 1, 2026). |
| Harvard | Barry Goldsmith 2010, p/e ratio, Smart Define, viewed 1 October, 2026, <http://smartdefine.org/p%2Fe_ratio/definitions/1160086>. |
| MLA | Barry Goldsmith. "p/e ratio" 21 October 2010. Web. 1 October 2026. <http://smartdefine.org/p%2Fe_ratio/definitions/1160086> |