“P/E” stands for Price/Earnings ratio. It is calculated by dividing the price of a share of stock by earnings per share (EPS), which is often based on he last historical year or estimates of future EPS. But careful here, as there is more than one type of EPS. A P/E ratio is one of many ways to evaluate the strength of a company. However, P/E ratios can be tricky things and do not always predict company worth in a consistent manner. This issue may be something you want to discuss with your professor, to see if they want you to use a "trailing" or "forward" P/E ratio.
For more detailed information you can look in
To search for the P/E ratio of a specific company, try a stock market website like Big Charts
- Search for the name of the company you wish to research
- When you refresh the page, you will see that the P/E ratio can change from minute to minute.
