 In the current session, Tortoise Acquisition Inc. NYSE: SHLL is trading at 31.29, after a 28.40 spike. Over the past month, the stock increased by 210.99, and in the past year, by 218.83. With performance like this, long-term shareholders optimistic but others are more likely to look into the price-to-earnings ratio to see if the stock might be overvalued.Assuming that all other factors are held constant, this could present itself as an opportunity for shareholders trying to capitalize on the higher share price. The stock is currently above from its 52 week high by 20.62.The PE ratio measures the current share price to the companys EPS. It is used by long-term investors to analyze the companys current performance against its past earnings, historical data and aggregate market data for the industry or the indices, such as SP; 500. A higher PE indicates that investors expect the company to perform better in the future, and the stock is probably overvalued, but not necessarily. It also shows that investors are willing to pay a higher share price currently, because they expect the company to perform better in the upcoming quarters. This leads investors to also remain optimistic about rising dividends in the future.Depending on the particular phase of a business cycle, some industries will perform better than others.Compared to the aggregate PE ratio of 28.51 in the Shell Companies industry, Tortoise Acquisition has a higher PE ratio of 189.0. Shareholders might be inclined to think that Tortoise Acquisition Inc. might perform better than its industry group. Its also possible that the stock is overvalued.There are many limitations to price to earnings ratio. It is sometimes difficult to determine the nature of the earnings makeup of a company. Shareholders might not get what theyre looking for, from trailing earnings.See more from Benzinga 11 Financial Services Stocks Moving In Mondays Pre-Market Session Stocks That Hit 52-Week Highs On Friday 8 Financial Services Stocks Moving In Fridays Pre-Market SessionC 2020 Benzinga.com. Benzinga does not provide investment advice. All rights reserved. 