Price-to-Earnings Ratio (P/E Ratio)

The price-to-earnings ratio, or P/E ratio, is a measure used by investors and analysts to assess the value of a company and its shares. It compares the current share price with earnings per share and can be looked at using past earnings or projected future earnings.

The P/E ratio helps show whether a stock's price looks high or low compared with the money the company earns per share.