Series 65: Price-to-earnings (P/E) Ratio

Taken from our Series 65 - NASAA Uniform Investment Advisor Law Exam

Definition of the term Price-to-earnings (P/E) Ratio...

a metric for valuing a company that measures the current share price of its securities in relation to its earnings per share (EPS). It is calculated by dividing market value per share by EPS.

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