P/E RATIO Definition

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P/E RATIO (PRICE/EARNINGS RATIO) is a stock analysis statistic in which the current price of a stock (todays last sale price) is divided by the reported actual (or sometimes projected, which would be forecast) earnings per share of the issuing firm; it is also called the "multiple".

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ACCRUAL CONCEPT see ACCRUAL BASIS OF ACCOUNTING.

CONTRACTEE is the person or entity who will receive the goods or services under the provisions of the contract.

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