they have some 484m shares outstanding,
but now i think recently its increased to 490m
they expect for 07 Net profit before tax announced of $10.3m
this company has losses so unlikely to pay tax, so lets assume after tax it's $7.5m earnings
you work out earnings per share first
$7.5m/490m shares outsanding gives you earnigs per share of 0.0153 (cents)
now if the price of the stock is 0.15 cents
than the Price earnings multiple is now: Price/earnings per share
that is 0.15/0.0153
which gives you a PE ratio of 9.8
that is for every 1 cent of earnings you pay 9.8 times that amount in price it measures how much you pay to be entitled to that earnings....
or for every 1 dollar of earnings, you pay 9.8 times in dollar values for the privelege of having this earnings...
9.8: 1 is the ratio or price to earnings