Price-to-earnings ratio (P/E ratio)

The price-earnings ratio, also known as P/E ratio, P/E, or PER, is the ratio of a company's share price to the company's earnings per share.

The ratio is used for valuing companies and to find out whether they are overvalued or undervalued.

In terms of understanding the ratio, a high ratio implies that investors are willing to pay more for every dollar of earnings. It could also imply that the company is overvalued.

Products

Resources

Legal & Regulatory

Raseed Invest Limited ("Raseed") registered in the Dubai International Financial Centre ("DIFC") and is regulated by the Dubai Financial Services Authority ("DFSA") to conduct financial services "Arranging Deals in Investments" with a 'Retail' endorsement. Raseed does not provide any trading or investment advice and shall not be responsible for any loss arising from any investment based on any general information provided by Raseed or as may be available on Raseed's website and other web-based services (collectively, the "Website Services"). Raseed does not warrant that the information is accurate, reliable or complete or that the supply will be without interruptions. Technology and services are offered by Raseed Invest Inc.