What is the meaning of P/E ratio?

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.

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APABarry Goldsmith. (2010). p/e ratio. Retrieved October 1, 2026, from http://smartdefine.org/p%2Fe_ratio/definitions/1160086
ChicagoBarry Goldsmith. 2010. "p/e ratio" http://smartdefine.org/p%2Fe_ratio/definitions/1160086 (accessed October 1, 2026).
HarvardBarry Goldsmith 2010, p/e ratio, Smart Define, viewed 1 October, 2026, <http://smartdefine.org/p%2Fe_ratio/definitions/1160086>.
MLABarry Goldsmith. "p/e ratio" 21 October 2010. Web. 1 October 2026. <http://smartdefine.org/p%2Fe_ratio/definitions/1160086>
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