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Related to Multiples: Common multiples


Another name for price/earnings ratios.
Copyright © 2012, Campbell R. Harvey. All Rights Reserved.

Price-Earnings Ratio

The price of a security per share at a given time divided by its annual earnings per share. Often, the earnings used are trailing 12 month earnings, but some analysts use other forms. The P/E ratio is a way to help determine a security's stock valuation, that is, the fair value of a stock in a perfect market. It is also a measure of expected, but not realized, growth. Companies expected to announce higher earnings usually have a higher P/E ratio, while companies expected to announce lower earnings usually have a lower P/E ratio. See also: PEG
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved
References in periodicals archive ?
UCD's Professor Michael Turner said the main reason for the spike is the increase in multiple pregnancies following Assisted Reproduction or IVF in Ireland.
In vitro fertilization in the United States often leads to multiple births.
3, small private companies (with similar growth potential within the same markets) trade at lower multiples (25 percent to 50 percent is common) of that of large publicly traded companies.
Despite the one-photon-one-exciton rule that solar-energy specialists had observed when photons hit the semiconductors in their power cells, physicists had known since the 1950s that photons at much higher energies could give rise to multiple excitons.
Mortality risk among multiples below 1,000 g carried an odds ratio of 1.5, and below 750 g the odds ratio was 1.9, compared with weight-matched singletons.
* Price/revenue multiple. When asked what they think their accounting practices are worth, most CPAs typically expect to sell for a price based on a multiple of the gross billings.
Mothering Multiples approaches the situation in a different manner.
While still discussed in the industry, per-case multiples are used less frequently as the primary determinant of value.
While there are many types of P/E ratios that can be used for a variety of purposes, there are two basic market multiple categories: common equity and invested capital multiples.
Rates of high-order multiples, defined as triplets or greater, and pregnancy rates reported by the centers were analyzed two ways:
Conversely, companies' P/E multiples soared to 40 or more times earnings in 1968 and 1972, when interest rates were much lower.

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