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What is the meaning and use of P/E.
Explain to a Rookie please!
Thanks
LkL
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If I'm not mistaken, it's the share price divided by the earnings per share. For example if Intel is trading at $100 and it's earnings for the quarter (or is it annually?) is $1 per share then Intel's P/E is 100. (Please, someone correct me if I am wrong).

--TabbOne
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LkL,

Here are a few links you might find useful:

Fool's School: The P/E Ratio
http://www.fool.com/school/ThePERatio.htm

Stock Research Feature: P/E Is Not a Magic Number (2 parts:
http://www.fool.com/research/2000/features000323.htm
http://www.fool.com/research/2000/features000330.htm

Best,

Dave
TMF Braden
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