# P/E Ratio

*Saving & Investing — Finicade finance glossary*

A stock's price divided by its earnings per share — how many dollars investors pay for each dollar of profit. A high P/E signals big growth expectations (or over-optimism); a low one, doubt or a bargain.

**Also known as:** p-e, price-earnings, pe ratio

**Related terms:** [EPS (Earnings Per Share)](https://finicade.com/glossary/eps), [Equity Valuation](https://finicade.com/glossary/equity-valuation), [Stock (Equity)](https://finicade.com/glossary/stock)

**Taught in:** Charter Climb — Equity Valuation

Source: https://finicade.com/glossary/p-e-ratio