price to earnings ratio Formula |
| \( P/E \;=\; \dfrac{ MPS }{ EPS } \) |
| Symbol |
| \( P/E \) = price to earnings ratio |
| \( EPS \) = earnings per share |
| \( MPS \) = market price of share |
Price to earnings ratio, abbreviated as P/E, is a way of gauging wheather the stock price is high or low compared to the past or to other companies.
