Price earnings ratio suggests that investors are expecting higher earning in the future. it is generally used to compare between one company to another, to any companies that are in the same industry or to history of the company itself. The ratio tell how much an investor pay per dollar of current earnings. According to the figure above, P/E the lower the better, Pepsi compare to Coke and Soft Drinks industry is lower that mean investors can invest lesser to earn money in Pepsi than in Coke.