Update: dictionary.com says twice a year... it continues with the definition with every two years: Biennial. In Britain, it seems, it might mean both... but in the U.S. biannual means twice a year.
We're talking about the price-to-earnings, or P/E, ratio. The current 12-month forward P/E ratio is 16.8, FactSet's John Butters said on Friday. This P/E ratio is above the 5-year average (13.8) and the 10-year average (14.1).. But just because stocks are expensive relative to their long-term average is no guarantee that prices are doomed to fall immediately.
Price-Earnings Ratio = Price per share Ã· Earnings per share. ESRX Price-Earnings Ratio = 63.32 Ã· 5.806 = 10.9x. On its own, the P/E ratio doesnât tell you much; however, it becomes extremely useful when you compare it with other similar companies.