https://www.thestreet.com/investing/what-is-a-pe-ratio-15000854https://www.thestreet.com/investing/what-is-a-pe-ratio-15000854]

What Is a P/E Ratio?

A P/E ratio, otherwise known as a price-to-earnings ratio, is simply a way to gauge how a company's earnings stack up against its share price. Think of it as a way to gauge how expensive a stock is. It might sound technical but it's pretty simple math. To find a stocks P/E ratio, you simply divide the stock's market value per share (or stock price) by the company's earnings per share. Let's look at the two most common types of P/E ratios, the ones I use, and look at a quick example of how it works.
The two types of P/E's that are most commonly discussed are the trailing P/E and forward P/E.