NIFTY 50 24,010.60 ▲ 195.25 (+0.82%)SENSEX 78,540.17 ▲ 499.43 (+0.64%)RELIANCE 2,945.10 ▲ 33.20 (+1.14%)HDFC BANK 1,678.40 ▼ 5.39 (−0.32%)TCS 3,910.75 ▲ 23.71 (+0.61%)HINDALCO 1,149.70 ▲ 45.92 (+4.16%)INFOSYS 1,556.20 ▼ 7.03 (−0.45%)ASIAN PAINTS 2,671.90 ▲ 7.46 (+0.28%)NIFTY 50 24,010.60 ▲ 195.25 (+0.82%)SENSEX 78,540.17 ▲ 499.43 (+0.64%)RELIANCE 2,945.10 ▲ 33.20 (+1.14%)HDFC BANK 1,678.40 ▼ 5.39 (−0.32%)TCS 3,910.75 ▲ 23.71 (+0.61%)HINDALCO 1,149.70 ▲ 45.92 (+4.16%)INFOSYS 1,556.20 ▼ 7.03 (−0.45%)ASIAN PAINTS 2,671.90 ▲ 7.46 (+0.28%)

What is P/E Ratio?

P/E Ratio (also called price to earnings, pe ratio) — Price-to-earnings — a stock’s price divided by its earnings per share. A quick gauge of how expensive a stock is relative to profits.

In simple terms

A P/E of 20 means investors pay ₹20 for every ₹1 of annual earnings.

Why P/E Ratio matters when you invest

Understanding p/e ratio helps you make better-informed decisions when you invest and trade on ROAR by DP TradeKING. Open a free account to put it into practice — ₹0 delivery brokerage and zero-commission direct mutual funds.

P/E Ratio — frequently asked questions

What is P/E Ratio?

Price-to-earnings — a stock’s price divided by its earnings per share. A quick gauge of how expensive a stock is relative to profits.

What does P/E Ratio mean in the stock market?

Price-to-earnings — a stock’s price divided by its earnings per share. A quick gauge of how expensive a stock is relative to profits. A P/E of 20 means investors pay ₹20 for every ₹1 of annual earnings.

Can you give an example of P/E Ratio?

A P/E of 20 means investors pay ₹20 for every ₹1 of annual earnings.

Put it into practice — open a free account.

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