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P/E ratio (price-to-earnings)

The P/E ratio divides a company’s share price by its earnings per share, showing how much investors pay for each dollar of profit.

The price-to-earnings (P/E) ratio is a share price divided by earnings per share (EPS). A P/E of 20 means the market is paying about $20 for every $1 of the company’s annual profit. It is one of the most widely used valuation measures.

A lower P/E can indicate a cheaper valuation relative to current earnings, but it can also reflect a business the market expects to shrink. A higher P/E often reflects expectations of future growth. P/E is most meaningful when comparing companies within the same industry.

A negative or zero P/E is not "low" — it means the company has negative or no earnings, which is a materially different situation from a low positive P/E. stocks-llm labels these cases distinctly and never treats a negative P/E as "cheap."

Lowest positive P/E in the catalog

Positive earnings only — a negative P/E is not "cheap."

CompanyP/EMarket cap
1WW International, Inc. (WW)0.14$167M
2DIGIMARC (DMRC)0.19$134M
3Games Workshop (GAW.L)0.31n/a
4ARENA GROUP HLDGS INC (AREN)0.48$53M
5FLEX LNG LTD (FLNG)0.51$1.6B

Live from the catalog, last updated 2026-09-01 — delayed data from SEC EDGAR + market data.

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Related terms

  • Market capitalization — Market capitalization (market cap) is the total value of a company’s shares — its share price multiplied by the number of shares outstanding.
  • PEG ratio — The PEG ratio divides a company’s P/E by its earnings-growth rate, so a fast grower and a slow grower can be compared on valuation more fairly than by P/E alone.
  • EV/EBITDA — EV/EBITDA compares a company’s enterprise value to its earnings before interest, taxes, depreciation, and amortization — a capital-structure-neutral valuation measure.
  • EBITDA — EBITDA is earnings before interest, taxes, depreciation, and amortization — a measure of operating profitability that ignores financing and non-cash charges.
  • Book value & price-to-book (P/B) — Book value is a company’s net assets on its balance sheet; the price-to-book (P/B) ratio compares the share price to that book value per share.

See more terms in the stocks-llm glossary.

Informational only — NOT financial advice. This is an educational definition, not a recommendation to buy or sell anything. Metrics on stocks-llm are delayed data and may be missing or stale. Always verify information independently and consult a qualified financial professional before making any investment decision.