Dogs of the Dow - Dividend stocks / High dividend yield stocksDogs of the Dow - Dividend stocks / High dividend yield stocksDogs of the Dow Newsletter
Dogs of the Dow - Dividend stocks / High dividend yield stocks
Main Menu Dogs of the Dow main menu

PE Ratio  

Facebook Google+ WordPress LinkedIn Twitter Blogger Tumblr Email AddThis

The PE ratio (Price / Earnings ratio) is the price of a stock or stock market index divided by past or future earnings (PE ratio = Price / Earnings). For example, if the price of a stock is $20 per share and that particular company earned $2 per share over the past 12 months, then the trailing twelve month PE ratio would be $20 / $2 or 10.

Many investors use the PE ratio to determine if a stock or the stock market as a whole is expensive or not. For example, the average PE ratio for the S&P 500 index from 1950-2000 was 15.4. When the market peaked in early 2000 the PE ratio of the S&P 500 was a relatively high 30 suggesting that stocks were expensive.

Related Terms: Earnings - Forward Earnings - Earnings Yield - Dividend - Dividend Yield




Click here for insightful stock market charts. Where is the market headed? The answer may surprise you. Find out
with the exclusive & Barron's recommended charts of Chart of the Day.

Dogs of the Dow | Dogs 2015 | 14 13 12 11 10 09 08 07 06 05 04 03 02 01 00 99 98 97 96 | Dog Years
Daily Performance - Current Doggishness | Daily Performance | YTD Performance | Stock Research
Weekly Performance - Current Doggishness | Previous Doggishness | Weekly | YTD | the Dow
Dog Steps | FAQ | FAQ 2 | Site Tips | Glossary | Top Dog Brokers | Broker Reviews
Dogs of the Dow Newsletter | Feedback | Tell a Friend | Privacy | Accolades

Stock ScreensNew - Current Doggishness | 2015 Dogs of the Dow | Largest Companies by Market Cap
Highest Dividend Paying Stocks | Highest Dividend Paying Large-Cap Stocks | Highest Dividend Paying Mega-Cap Stocks
Dow Jones Industrial Average Companies | Dow Jones Transportation Average Companies | Dow Jones Utilities Average Companies
Most Active Stocks Today | Biggest Stock Gainers Today | Biggest Stock Losers Today
Ex-Dividend Date Calendar | Lowest PE Ratio Stocks

Stock Symbols List - ETF Symbols List

Investor Glossary - Accounting | Banking | Bonds | Brokers | Economy | Futures
Mutual Funds | Options | Real Estate | Retirement | Stocks | Taxes | Technical Analysis

©1995-2015 Dogs of the Dow - All rights reserved