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.
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