      The primary tool that I used to evaluate the relative value of stockswas the Price Earnings (PE) Ratio. The PE Ratio measures the relationshipbetween the share price and total company profits, which equals dividendsplus retained earnings. The PE Ratio is an excellent tool to comparedifferent companies. It is unbiased "relative" weight of the ratio ofcurrent stock price to earnings per share for different companies.Depending upon the sector that a company is in and the outlook that marketparticipants have for that company, the PE Ratio will vary relative toother companies.