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

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"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 earnings per share (= a company's profits over a particular period divided 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)