Price-to-Earnings (P/E) Ratio
مكرر الربحية
The price-to-earnings ratio divides a company’s share price by its earnings per share, showing how many pounds investors pay for each pound of annual profit. It is one of the most widely used valuation multiples for comparing listed companies within the same sector. A trailing P/E uses reported earnings, while a forward P/E uses forecast earnings.
Example
A share at 60 EGP earning 6 EGP per share trades on a P/E of 10 — you are paying ten pounds for each pound of annual earnings. At the same price with earnings of 3 EGP, the P/E is 20.
Why it matters
It converts price into a multiple of earnings, which is the only way to compare what you are paying across companies of different sizes and share prices. Comparing it against sector peers is where it carries information.
A common mistake
Reading a low P/E as cheap. A low multiple often means the market expects those earnings to fall, and a high one can reflect earnings expected to grow. The ratio is a question about expectations, not an answer about value.
Live example from the Egyptian market
Commercial International Bank - Egypt (CIB) S.A.E. (COMI) trades at a P/E of 6.64 today, at EGP 138.17 a share. Details →
Data as of ; refreshes with every session or disclosure.