This means that while there might be fluctuations in prices of stocks or mutual funds day - to - day, you're thinking about longer time periods — like years and years. (aplusfcu.org)
Price - to - earnings (P / E) ratio takes the current price of a stock divided by its earnings per share. (americanfunds.com)
It is calculated by dividing the current closing price of the stock by the latest quarter's book value per share. (investopedia.com)