What is P/E Ratio (Price-to-Earnings Ratio)?
The P/E ratio measures how much investors pay for each rupee of a company's earnings. It's calculated by dividing the stock price by earnings per share (EPS).
Formula
P/E Ratio = Stock Price ÷ Earnings Per Share (EPS)
How to Interpret
A high P/E may indicate growth expectations; a low P/E may suggest undervaluation or fundamental issues. Always compare within the same sector.
Typical Ranges
Varies by sector. IT: 20-35, Banking: 10-20, FMCG: 30-50 in India.
Find Stocks Using This Metric
Use the Equiscale Stock Screener to filter Indian stocks by P/E Ratio.
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