This article focus to Define and Discuss on Price Earnings Ratio. The Price Earnings ratio is probably the first things encountered by way of new investor looking in order to explore investment fundamentals. This is a mathematical calculation that relates share price for the earnings per share, each past and projected. Compare the Price Earnings ratio between companies within the same industry and industry. If you find a specific company trading way below the typical of other competing companies it may provide an opportunity. You must determine the explanation for its low value and if they can and will resume normal levels.