The ratio tells you that you pay this much for a stock that earns this much. So for a PE ratio of 16, it tells us that market participants are willing to pay 16 times the expected earning of the share.
Growth rate of earnings (net income) shows that the company and its value is growing. And if the company value is growing, that means the stock prices ought to grow too.
Given its wide array of subsidiaries, AGI is one of my favorite stocks. Recently, AGI released their 1H11 financials and I would say that the AFS presented very strong first half results.