price-earnings multiple Meaning in the Cambridge English Dictionary Cambridge dictionaries logo

Meaning of “price-earnings multiple” in the English Dictionary

"price-earnings multiple" in Business English

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price-earnings multiplenoun [C]

uk   us  
ACCOUNTING, FINANCE the ​price of a company's ​shares in relation to earningspershare (= a company's ​profits over a particular ​perioddivided by the ​number of its ​shares): The price-earnings ​multiple is just one possible ​guide as to what to ​invest in.
(Definition of price-earnings multiple from the Cambridge Business English Dictionary © Cambridge University Press)
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