      PE Ratios can also be calculated by substituting expected futureearnings per share in the place of "current earnings per share." Regardlessof whether you are comparing current or future expected PE Ratios, it is anexcellent tool to compare the relative value of stocks in a given sector orbroad market average. Stocks with the highest PE Ratios stand the greatestrisk of sharp downside movements when very bearish news is released. Stockswith the lowest PE Ratios have the greatest propensity for sizeable upsidemovements when very bullish news is released.