Price/Earnings Average

Metadata

  • Id: average_price_earnings_ratio
  • Type: fundamentals
  • Subtype: ratios
  • Units: ratio
  • Decimal Points: 2
  • Currency Convertible: No
  • Tags: “P/E average”, “price to earnings average”, “price earnings average”, “average earnings multiple”, “average price per earnings”

Description

Price to Earnings (P/E) Ratio is a measure of how much investors are willing to pay for a company’s earnings. It compares the current price of a stock to the company’s earnings per share (EPS). A higher P/E ratio means that investors are paying more for each dollar of earnings, which could indicate that they expect higher growth in the future. A lower P/E ratio means that investors are paying less for each dollar of earnings, which could indicate that they expect lower growth or that the company is undervalued. The formula for P/E ratio is:
P/E Ratio = Average Price per Share / Earnings per Share
Where: - Average Price per Share is R0136, pr_average - Earnings per Share is TM010, ttm_eps_bef_xo_item