Vericel Corp. (VCEL)

[commoncentsinvestor]

P = Price per share
E = Earnings per share

PE means Price times earnings.

In the example I gave, earnings were .50 per share.

According to Investopedia: "The average market P/E ratio is 20-25 times earnings."

Using the low end of that (20) the share price would be 20 x .50 or $10.

Actually, based upon revenue growth of about 100%, the PE ratio should be much higher than that.

And, yes, a company must have profits in order to have a PE.