Definition of Price to earning ratio The price–earnings ratio, also known as P/E ratio, is the ratio of a company’s share (stock) price to the company’s earnings per share. The ratio is used for valuing companies and to find out whether they are overvalued or undervalued. Meaning of P/E Ratio: It is a financial ratio … Continue reading What is Price to Earning Ratio ? Uses of P/E Ratio in Analyzing Companies.