PE Ratio

Basics

• From Investopedia (30-5-2020):

"The price-to-earnings ratio (P/E ratio) is the ratio for valuing a company that measures its current share price relative to its per-share earnings (EPS). The price-to-earnings ratio is also sometimes known as the price multiple or the earnings multiple.

P/E ratios are used by investors and analysts to determine the relative value of a company's shares in an apples-to-apples comparison. It can also be used to compare a company against its own historical record or to compare aggregate markets against one another or over time."

• From Bankless (2020 Q3 report):

"While many of these protocols  are generating revenues, not all of it (if any) accrues to the protocol’s native token - an important distinction to  recognize when valuing these assets. Price to earnings (P/E) is the profit that is accrued to the protocol’s token whereas Price to Sales (P/S) is the  revenue generated from usage of the protocol at large."