Price to Earnings Ratio

Price-to-Earnings Ratio — P/E Ratio Definition, Formula and Examples

WRITTEN BY DAN BLYSTONE | UPDATED NOVEMBER 15, 2022

The price-to-earnings ratio (P/E) is among the most important and commonly used valuation metrics in the fundamental analysis of stocks. It is also referred to as the price multiple, or the earnings multiple. Benjamin Graham, known as the father of value investing and the mentor of Warren Buffett, helped to popularize the P/E ratio.

The source article on investing.com Academy Center explains the meaning of P/E ratio and how it can help guide your investment decisions.