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What Is P/E Ratio & How To Calculate It?


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P/E stands for Price to Earnings ratio. 

It is a measure of a company’s current stock price relative to its earnings. It gives you a fair idea of what the market is willing to pay for a given company’s earnings. 

The formula is P/E ratio = Market Price of the share / Earning per share

In simple words, we can say the P/E ratio is the price an investor is willing to pay for earnings of one rupee from that share. To know PE Ratio in-depth, do watch our video.

To watch the entire video - https://youtu.be/vKdWMAM8mCI

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