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English definition of “price-earnings multiple”

price-earnings multiple

noun [C]
 
 
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)
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