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The Price/Earnings Ratio P/E Ratio

The Price/Earnings Ratio P/E Ratio. Dr. Clive Vlieland-Boddy. What everybody knows about the P/E ratio. Widely used stock measure Definition: P/E = Price (in dollars /share) divided by Earnings (in dollars/share) Example: ExxonMobil (XOM) costs $84.26/share and earned $6.80/share.

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The Price/Earnings Ratio P/E Ratio