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Asked a question 2 years ago

What are PE and P/E?

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P/E is a ratio that compares the current market price of a security to the earnings per share. It is calculated as:

Market price per share / Earnings per share


Earnings per share = Profit after tax / Number of shares outstanding

P/E and PE are often used interchangeably when talking about stocks and they mean one and the same - Price to earnings ratio. Alternatively, CE and PE in the context of Options mean European Call and European Put option, respectively.

PE - Option terminology : European Put Option

P/E - Fundamentals : Price to Earning Ratio