The PE ratio is defined as:

A) Dividends per share divided by earnings per share.
B) Earnings per share divided by dividends per share.
C) Price per share divided by earnings per share.
D) Earnings per share divided by price per share.
E) Price per share divided by equity per share.

PE Ratio

Price-to-Earnings Ratio, a valuation metric that compares the current share price of a company to its per-share earnings.

Dividends Per Share

Dividends per share (DPS) is a financial ratio that indicates how much a company pays out in dividends each year relative to its share price.

Earnings Per Share

A measure of a company's profitability that divides its net earnings available to common shareholders by the outstanding shares.