Close Navigation
Learn more about IBKR accounts

P/E Ratio

Trading Term

Also known as Price to Earnings Ratio, this is a measure of a company’s stock valuation. P/E Ratio is calculated as follows: Market Value per Share / Earnings per Share (EPS) P/E ratio also measures expected, but not realized, growth. A company that expects to announce higher earnings usually have a higher P/E ratio than companies expected to announce lower earnings.

IBKR Campus Newsletters

This website uses cookies to collect usage information in order to offer a better browsing experience. By browsing this site or by clicking on the "ACCEPT COOKIES" button you accept our Cookie Policy.