Meaning of “earnings capitalization ratio” in the English Dictionary

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"earnings capitalization ratio" in Business English

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earnings capitalization rationoun [ C ]

uk us also earnings capitalization rate STOCK MARKET

a measure of the value of a share in the best possible conditions. It is calculated by dividing the expected annual earnings of a share by the present price of a share.

(Definition of “earnings capitalization ratio” from the Cambridge Business English Dictionary © Cambridge University Press)