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 October 1, 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 October 1, 2026).
HarvardBarry Goldsmith 2010, price earnings ratio (pe ratio), Smart Define, viewed 1 October, 2026, <http://smartdefine.org/price_earnings_ratio_(pe_ratio)/definitions/1161034>.
MLABarry Goldsmith. "price earnings ratio (pe ratio)" 21 October 2010. Web. 1 October 2026. <http://smartdefine.org/price_earnings_ratio_(pe_ratio)/definitions/1161034>