Regarding PE Ratio

Discussion in 'Options' started by XM911E3, Apr 16, 2008.

  1. XM911E3


    Hi guys, I am very confuse regarding PE ratio. I go online to search but can't seems to get it. I don't understand that if a company's PE ratio is 8, that means you pay $8 every $1 the company make????

    Please explain to me in very layman's term. Thank you.