P/E ratio
Fundamental analysisPrice divided by earnings per share — the multiple of annual profit being paid per share.
In plain terms
How many years of current profit you are handing over. Inverts its meaning for cyclicals.
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Glossary
Every term is defined twice: once the way a filing would put it, and once the way somebody would explain it to you across a table. The second one is usually the one that sticks.
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