As shown above, different terms are frequently used for the same items on financial statements. This figure is reported for each quarter and the year-end. The EPS is what generally drives the prices of a stock. When the earnings are released the price of a stock usually increases further on better than expected earnings and decreases if earnings do not meet investor's expectations. The PE is also called the multiple.
PE essentially measures how much investors are willing to pay per dollar of current earnings.
A higher PE generally means that investors feel the company has significant prospects for growth. Usually an investor will compare the PE of a company to the PE of other companies in the same industry. If the PE is higher than the average, the company might be overvalued, which means that the earnings or expected future earnings do not support the price of the stock. This means the stock is expensive, whereas a relatively low PE usually means the stock is a good value. If there is a general consensus that you looking at a fabulous company and most investors think they will continue to have great earnings, it might be OK for the PE to be high.