• See Price/Earnings ratio.

 Referenced Terms
 Contract month: The month in which futures contracts may be satisfied by making or accepting a delivery. Also called value managers, those who assemble portfolios with relatively lower betas, lower price-book and P/e ratios and higher dividend yields, seeing value where others do not.

 Forward looking multiple: A truncated expression for a P/e ratio that is based on forward (expected)earnings rather than on trailing earnings.

 Growth manager: A money manager who seeks to buy stocks that are typically selling at relatively high P/e ratios due to high earnings growth, with the expectation of continued high or higher earnings growth.

 P/e effect: That portfolio with low P/e stocks has exhibited higher average risk-adjusted returns than high P/E stocks.

 P/e ratio: Assume XYZ Co. sells for $25.50 per share and has earned $2.55 per share this year; $25. 50 = 10 times $2. 55 XYZ stock sells for 10 times earnings. P/e = Current stock price divided by trailing annual earnings per share or expected annual earnings per share.

 Related Terms
 P/e effect
P/e ratio
Price/earnings p/e ratio

<< P&s P/e effect >>

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