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Glossary

P/E ratio

Share price divided by earnings per share.

P/E ratio

Share price divided by earnings per share.

In practice

Share price divided by earnings per share. Understanding it helps you read the rest of our coverage with confidence.

Frequently asked

Why does P/E ratio matter?
Because it changes how you should read the numbers.
Is P/E ratio the same everywhere?
Definitions vary slightly by region and source.

Related terms

Bear marketA decline of 20% or more from a recent high.Dividend yieldAnnual dividends divided by share price.HalvingA scheduled cut in Bitcoin's block reward.BridgeA protocol that moves assets between blockchains.DeFiDecentralised finance: financial services built on smart contracts.Yield curveA chart of bond yields across maturities.