Price–earnings ratio
Also known as: price-to-earning ratio · price/earnings
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.
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Metric used to identify irrational exuberance
Shiller and other analysts use high P/E ratios to demonstrate that market prices have become detached from the actual earnings potential of companies.