Business / Finance / Price-Earnings Ratio: Shows the multiple of earnings at which a stock sells. Determined by dividing current stock price by current earnings per share (adjusted for stock splits). Earnings per share for the P/E ratio are determined by dividing earnings for past 12 months by the number of common shares outstanding. Higher multiple means investors have higher expectations for future growth, and have bid up the stock's price.
Ratio Adverb Synonyms: proportion, relationship, correlation, correspondence
Business / Finance / Low Price-Earnings Ratio Effect: The tendency of portfolios of stocks with a low price-earnings ratio to outperform portfolios of stocks with high price-earnings ratios. MORE
Business / Agriculture / Organization For Economic Development And Cooperation (OECD): An international organization established by the United States, Canada and certain Western European countries in 1960. The OECD studies and discusses trade and related matters. Its current 29 members MORE