A beginner's guide to p/e ratios

A short video guide to one of the most widely used ratios you'll see in the financial media – the price/earnings, or p/e, ratio.

By Tim Bennett
published

MoneyWeek deputy editor Tim Bennett explains one of the most widely used ratios you'll see in the financial media the price/earnings, or p/e ratio. What it measures, how you calculate it, and what it's used for.

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See also MoneyWeek'sfinancial glossary.

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Tim Bennett

Tim graduated with a history degree from Cambridge University in 1989 and, after a year of travelling, joined the financial services firm Ernst and Young in 1990, qualifying as a chartered accountant in 1994.

He then moved into financial markets training, designing and running a variety of courses at graduate level and beyond for a range of organisations including the Securities and Investment Institute and UBS. He joined MoneyWeek in 2007.

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