"The P/E ratio, or price-to-earnings ratio, is a crucial financial metric used to evaluate a company's current share price relative to its per-share earnings. **During loss-making periods, a company has no earnings (or negative earnings), making the P/E ratio incalculable.** Attempting to calculate it would result in a division by zero or a negative value, rendering the ratio meaningless in assessing the company's financial health. Investors and analysts often use alternative valuation metrics, such as price-to-sales or price-to-book ratios, to assess companies experiencing losses."