Valuation
P/E Ratio
The price-to-earnings ratio compares a stock's price with the profit the company has already earned.
The P/E ratio is the first valuation check most investors run. It asks a plain question: how many dollars of share price are attached to each dollar of trailing earnings? A P/E of 20 means the market is paying $20 for $1 of recent annual profit. It is not a verdict. A low number can be a bargain or a business the market expects to shrink. A high number can be a fad or a company whose earnings are about to catch up with the price.
Use trailing P/E when you want a figure built only from reported results. Compare it with the company's own history and with peers in the same industry. Banks, software firms, and oil producers do not share a normal P/E. On Stocklytics the ratio sits on the stock page and in screener columns so you can sort a list instead of memorizing one ticker.
Formula
P/E = Share price ÷ trailing twelve-month earnings per share
Live example
Apple Inc. (AAPL) last printed at $346.12 with a market cap of $5.05T. Apply the formula on this page to that live price. Where the quote is missing an input, the stock page's financials are the next place to read it.
Related
Forward P/E · PEG Ratio · Earnings Yield
See it on a list: best stocks · screener
Questions
Does a low P/E mean a stock is cheap?
Only relative to its earnings power. A low P/E on falling earnings can be a value trap. Read the ratio next to revenue growth, margins, and the forward P/E.
Why is P/E missing for some stocks?
The ratio needs positive trailing earnings. Loss-making companies have no meaningful positive P/E, so the field is left blank rather than shown as a negative curiosity.