P/E ratio
Price-to-Earnings Ratio
Valuation RatiosThe ratio of a company's current stock price to its earnings per share. Indicates how much investors are willing to pay for each rupee of earnings.
Formula
P/E = Market Price per Share / EPS
Why it matters
A high P/E suggests investors expect high future growth, while a low P/E might indicate undervaluation or problems. Compare within same industry.
Indian example
Related terms
Learn the concept
Market ratios →From the research
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