Price–earnings ratio

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What Wikipedia says

The price–earnings ratio, also known as P/E ratio, P/E, or PER, is the ratio of a company's share price to the company's earnings per share. The ratio is used for valuing companies and to find out whether they are overvalued or undervalued.

Excerpt from the Wikipedia article “Price–earnings ratio”, under the CC BY-SA 4.0 license. Read the article on Wikipedia