Great explanation. It’s amazing how many trade stocks and don’t understand PE ratios. I encourage those people to go to whatever brokerage they are using and check the PE ratios for companies like Tesla (over 750) and Amazon (121) or a company like Halliburton that trades for near $15.00 a share and has NO PE ratio because they lose money.
Do not rely on my opinions when making investment decisions. They are only opinions and I am probably no smarter than you!