P/E= Price to earnings.----Example using CLL.----CLL  reported making $.20 per share, (net revenue).----It's trading at $4.02.----Divide $4.02 by the $.20 and you get 20.1 p/e.-----If it were trading at $8.04, the p/e would be 40.2. In other words, the higher the stock is trading, with the same earnings, the higher the p/e ratio. So if our stock was trading higher, it would be considered more overvalued.---10-15 x earnings is considered the norm for this type of company, so with our stock trading at a ratio of 20.1, it would be considered slightly overvalued.---Generally, with an established company, (large cap energy), analysts would judge the p/e by next years projected earnings.-----Hope this helps.-----CHEERS!!!