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Hi Robert!


Welcome to the Motley Fool... I had to refresh my understanding of the P/E so I looked at the info on one of my favorite sites for definitions, take a look at the following.


http://www.investopedia.com/terms/p/price-earningsratio.asp

Price-Earnings Ratio - P/E Ratio
What Does Price-Earnings Ratio - P/E Ratio Mean?
A valuation ratio of a company's current share price compared to its per-share earnings.

Calculated as:

Market Value per Share / Earnings per Share

For example, if a company is currently trading at $43 a share and earnings over the last 12 months were $1.95 per share, the P/E ratio for the stock would be 22.05 ($43/$1.95).


Of course this question is somewhat relative and there are other facts to be learned - Take a look at this link for additional info concerning the P/E, which shows what I entered into the Investopedia search box.

http://www.investopedia.com/search/searchresults.aspx?
q=Price+to+Earnings+calculation&submit=Search

Good luck on your learning about Investing!

~hildy
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