When presenting to angel investors, it is important to understand the terms commonly used when evaluating an investment:

Definition of price earnings ratio

Price Earnings Ratio (P/E ratio) is a ratio used to evaluate the relationship between a company's price per share and the earnings per share (EPS). Price Earnings Ratio is an indicator of current financial performance and investor expectations for future performance. The higher the P/E ratio a company commands, the higher the expectations for future rates of growth.