---
canonical_url: https://www.stockexpertai.com/learn/pe-ratio
doc_version: "1.0"
title: What is P/E Ratio? Complete Guide with Examples (2026)
description: "Learn what P/E ratio means, how to calculate it, what makes a good P/E, and how to compare P/E across sectors with real examples."
---

# What is P/E Ratio? Complete Guide with Examples (2026)

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## What is P/E Ratio? Complete Guide with Examples

Learn what P/E ratio means, how to calculate it, what makes a good P/E, and how to compare P/E across sectors with real examples.

## Quick Answer

P/E ratio divides stock price by earnings per share. A P/E of 20 means investors pay $20 per $1 of earnings. The S&P 500 average is about 15-17.

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