Just because a stock is cheap doesn't mean you should buy it. Many investors prefer the PEG Ratio, instead, because it factors in the growth rate. Even better is the dividend-adjusted PEG ratio because it takes the basic price-to-earnings ratio and adjusts it for both the growth rate and the dividend yield of the stock. The price-earnings ratio, also known as P/E ratio, P/E, or PER, is the ratio of a company's share (stock) price to the company's earnings per share. The ratio is used for valuing companies and to find out whether they are overvalued or undervalued. Definition: List price, often called catalog price, is the full price that an item is advertised at without taking into account any discounts or special offers. In other words, this is the amount of money the business is willing to sell their products for. What Does List Price Mean? When a company creates a print catalog or online store, it lists products with an assigned price.