Price-earnings ratio

The price-earnings ratio (P/E ratio) is a key figure that compares the market price of a share to its earnings per share.

The price-earnings ratio can also be used as a key figure for equity ETFs. It is reported in the fact sheets of ETF providers and refers to the past 12 months.

The forward P/E ratio describes the ratio of the share price to the expected future earnings per share, usually for the next 12 months.