| |
 |
|
The most common measure of how expensive a stock is. Equal to a stock's capitalization divided by its after-tax earnings over a 12-month period, usually the trailing period but occasionally the current or forward period. The value is the same whether the calculation is done for the whole company or on a per-share basis. Equivalently, the cost an investor in a given stock must pay per dollar of current annual earnings. also called earnings multiple.
This Glossary is provided by www.InvestorWords.com
Copyright © 1997-2005 by WebFinance Inc. All Rights Reserved.
|
|
|
|
Full Newsletter 
