The P/E ratio is a measure of how much it costs to buy the earnings of a company.
The statement is True. The price-earnings ratio (P/E ratio) is indeed a measure of how much it costs to buy the earnings of a company. It is calculated by dividing the market price per share of a company by its earnings per share (EPS). The P/E ratio provides investors with information about how much they are willing to pay for each dollar of earnings.