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A price - esmings ratio or P / E ratio is colculated as o firm's shore price compared to the income or profit earned by
A priceesmings ratio or PE ratio is colculated as o firm's shore price compared to the income or profit earned by the firm per share. Generally, a high E ratio suggests that investors are expecting higher eornings growth in the future compored to companies with a lower PE ratio. The accompanying table shows companies that comprise the Dow Jones Industrial Average DJIA and their PE ratios as of May at the time dato were retrieved, the P E ratio for one firm on the DJIA. Bank of Americo, wos not available
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