Hi,
I am not an expert myself but I know few things ...
If you look at a company's annual report, you can find out what is the total number of equity shares that they have issued. And if you look at the results announced by them, you can find out the net earnings of the company.
EPS is Earnings per Share and it is the ratio of total earnings and number of shares outstanding.
P/E is Price/Earning per Share or P/EPS. Price is the current market price of one share. You divide this market price by earnings your company has made and you reach the figure of P/E. Basically this would mean that the current trading price is P/E times the earnings per share of the company.
Example
Market Price: 10
Earnings: 100
No of shares outstanding: 100
EPS = 100/100 = 1
P/E = Market Price / EPS = 10 / 1 = 10
So basically we are paying 10 rupees for a company that is making one rupee per share. Or we are rating this company at 100% premium ... !