GlossaryP/E Ratio

P/E Ratio

P/E

How much investors pay for each dollar of a company's earnings.

The price-to-earnings ratio divides a company's share price by its earnings per share (EPS), usually trailing twelve months. It's the most widely used valuation shorthand — a quick read on how expensive a stock is relative to the profit it actually generates.

The formula

Price per ShareEarnings per Share (TTM)
= P/E Ratio

Why it matters

  • A high P/E can mean the market expects strong future growth — or that the stock is simply overpriced.
  • A low P/E can signal a bargain — or a business the market doesn't trust.
  • P/E only makes sense compared to a peer group or the company's own history; 18× means something different in software than in banking.

How to read it

< 10×Cheap relative to earnings, or the market is pricing in trouble
10×–25×Typical range for a mature, stable business
> 25×Priced for high growth — or running hot

Lowest P/E in our coverage

Live · Fisclear coverage

No qualifying data yet — check back as more reports are added.

Want the full picture? Build a custom screen across all metrics, or browse by sector.

Related terms