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What is the meaning and use of P/E.Explain to a Rookie please!ThanksLkL
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
LkL,Here are a few links you might find useful:Fool's School: The P/E Ratiohttp://www.fool.com/school/ThePERatio.htmStock Research Feature: P/E Is Not a Magic Number (2 parts:http://www.fool.com/research/2000/features000323.htmhttp://www.fool.com/research/2000/features000330.htmBest,DaveTMF Braden
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