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English definition of “P/E ratio”

P/E ratio

noun [C]     (also P/E multiple)
ACCOUNTING, FINANCE, STOCK MARKET abbreviation for price/earnings ratio or price-to-earnings ratio: a company's share price in relation to its profits: The P/E ratio is a key gauge used by the City in assessing the price of shares.
(Definition of P/E ratio noun from the Cambridge Business English Dictionary © Cambridge University Press)
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