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hereamp;#39;s what the p e ratio of the stock tells you p e stands for price to earnings you get this ratio by taking a companyamp;#39;s current stock price and dividing it by its profits or earnings per share as an example Microsoftamp;#39;s currently trading at 290.73 and its earnings per share over the past 12 months has been 9.39 giving us a ratio of 30.96 this means that investors are currently willing to pay 30.96 per one dollar Microsoft profits Baltimore investing tips