[{"data":1,"prerenderedAt":242},["ShallowReactive",2],{"term:price-to-earnings-ratio":3},{"term":4,"related":233},{"id":5,"title":6,"body":7,"category":213,"description":214,"extension":215,"faq":216,"meta":220,"navigation":221,"path":222,"related":223,"seo":226,"stem":227,"takeaways":228,"__hash__":232},"terms\u002Fterms\u002Fprice-to-earnings-ratio.md","Price-to-Earnings Ratio (P\u002FE)",{"type":8,"value":9,"toc":206},"minimark",[10,15,19,22,26,199,203],[11,12,14],"h2",{"id":13},"understanding-price-to-earnings-ratio","Understanding Price-to-Earnings Ratio",[16,17,18],"p",{},"The P\u002FE ratio shows how much investors pay for each dollar of earnings. A high P\u002FE can mean expected growth or overvaluation.",[16,20,21],{},"Compare P\u002FE ratios within the same industry; typical levels differ a lot between sectors.",[11,23,25],{"id":24},"formula","Formula",[27,28,31],"span",{"className":29},[30],"katex-display",[27,32,35,72],{"className":33},[34],"katex",[27,36,39],{"className":37},[38],"katex-mathml",[40,41,44],"math",{"xmlns":42,"display":43},"http:\u002F\u002Fwww.w3.org\u002F1998\u002FMath\u002FMathML","block",[45,46,47,67],"semantics",{},[48,49,50,54,58],"mrow",{},[51,52,53],"mtext",{},"P\u002FE",[55,56,57],"mo",{},"=",[59,60,61,64],"mfrac",{},[51,62,63],{},"Price per share",[51,65,66],{},"Earnings per share",[68,69,71],"annotation",{"encoding":70},"application\u002Fx-tex","\\text{P\u002FE} = \\frac{\\text{Price per share}}{\\text{Earnings per share}}",[27,73,77,106],{"className":74,"ariaHidden":76},[75],"katex-html","true",[27,78,81,86,94,99,103],{"className":79},[80],"base",[27,82],{"className":83,"style":85},[84],"strut","height:1em;vertical-align:-0.25em;",[27,87,91],{"className":88},[89,90],"mord","text",[27,92,53],{"className":93},[89],[27,95],{"className":96,"style":98},[97],"mspace","margin-right:0.2778em;",[27,100,57],{"className":101},[102],"mrel",[27,104],{"className":105,"style":98},[97],[27,107,109,113],{"className":108},[80],[27,110],{"className":111,"style":112},[84],"height:2.2519em;vertical-align:-0.8804em;",[27,114,116,121,195],{"className":115},[89],[27,117],{"className":118},[119,120],"mopen","nulldelimiter",[27,122,124],{"className":123},[59],[27,125,129,186],{"className":126},[127,128],"vlist-t","vlist-t2",[27,130,133,181],{"className":131},[132],"vlist-r",[27,134,138,155,166],{"className":135,"style":137},[136],"vlist","height:1.3714em;",[27,139,141,146],{"style":140},"top:-2.314em;",[27,142],{"className":143,"style":145},[144],"pstrut","height:3em;",[27,147,149],{"className":148},[89],[27,150,152],{"className":151},[89,90],[27,153,66],{"className":154},[89],[27,156,158,161],{"style":157},"top:-3.23em;",[27,159],{"className":160,"style":145},[144],[27,162],{"className":163,"style":165},[164],"frac-line","border-bottom-width:0.04em;",[27,167,169,172],{"style":168},"top:-3.677em;",[27,170],{"className":171,"style":145},[144],[27,173,175],{"className":174},[89],[27,176,178],{"className":177},[89,90],[27,179,63],{"className":180},[89],[27,182,185],{"className":183},[184],"vlist-s","​",[27,187,189],{"className":188},[132],[27,190,193],{"className":191,"style":192},[136],"height:0.8804em;",[27,194],{},[27,196],{"className":197},[198,120],"mclose",[11,200,202],{"id":201},"example","Example",[16,204,205],{},"A $60 stock with EPS of $3 has a P\u002FE of 20.",{"title":207,"searchDepth":208,"depth":208,"links":209},"",2,[210,211,212],{"id":13,"depth":208,"text":14},{"id":24,"depth":208,"text":25},{"id":201,"depth":208,"text":202},"investing","A company's share price divided by its earnings per share.","md",[217],{"q":218,"a":219},"What is a good P\u002FE ratio?","There is no single number. Compare a company with its own history and with peers in the same industry.",{},true,"\u002Fterms\u002Fprice-to-earnings-ratio",[224,225],"earnings-per-share","market-capitalization",{"title":6,"description":214},"terms\u002Fprice-to-earnings-ratio",[229,230,231],"P\u002FE compares share price with earnings per share.","A high P\u002FE can signal growth expectations or overvaluation.","Compare P\u002FE only among similar companies.","_lKCa3hd9pIR_lwG4IhviXZEidCjPSveITZVQkvjA-c",[234,238],{"title":235,"description":236,"path":237},"Earnings Per Share (EPS)","A company's net profit divided by its shares outstanding.","\u002Fterms\u002Fearnings-per-share",{"title":239,"description":240,"path":241},"Market Capitalization","The total market value of a company's outstanding shares.","\u002Fterms\u002Fmarket-capitalization",1793226379088]