Switch to:   The P/E ratio is the most widely used ratio in the
valuation of stocks. It is calculated as:  P/E Ratio = Share
Price / Earnings per Share   P/E Ratio = Market Cap / Net Income
There are at least three kinds of P/E ratios used by different
investors. They are Trailing Twelve Month P/E Ratio or P/E
(ttm), forward P/E, or P/E (NRI). A new P/E ratio based on
inflation-adjusted normalized P/E ratio is called Shiller P/E,
after Yale professor Robert Shiller.  In the calculation of P/E
(ttm), the earnings per share used are the earnings per share
over the past 12 months. For Forward P/E, the earnings are the
expected earnings for the next twelve months. In the case of P/E
(NRI), the reported earnings less the non-recurring items are
used.  For the Shiller P/E, the earnings of the past 10 years
are inflation-adjusted and averaged. The result is used for P/E
calculation. Since it looks at the average over the last 10
years, Shiller P/E is also called PE10.   P/E Ratio = Market Cap
/ Net Income   The P/E