Financials
P/E ratio
Price per share divided by earnings per share.
What it means
The P/E ratio compares market price with reported or expected earnings per share. Trailing and forward P/E use different earnings inputs, so labels matter.
Example
A $50 share price and $2 of EPS produce a P/E ratio of 25.
What not to infer
A low or high P/E is not a conclusion without growth, quality, risk, and accounting context.