Hi Prabhi, First of all no question is silly. For investing in markets or for any other purpose its very important that your basics are correct. EPS is earning per share. As shareholders are actual owners of the company EPS will tell you how much company is earning per share. Its calculated as PAT/No.of shares. here PAT is profit after tax.
You can compare P/E ratio with any competitive firm in same business or you can compare it with industry's avg P/E.
If your stocks P/E is lower than its competitor who is almost equal in size than you can roughly estimate that your stock is underprice. but P/E alone cant tell you surely the fair value of any stock. With P/E you need to use other parameters also.
Hope it helps.
Rel Power will hit the market during 2nd week of November.