Sir kindly explain pe ratio
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P/E ratio i.e Price to earnings ratio is a ratio which shows that price is how many times of earnings. It’s helps to value a Co. The formula is Market price / EPS.
It basically helps in Apple to Apple comparison. Say a peer group of 10 Co’s have P/E of 20 times. And a Co X has reported EPS of 15 so the price would be 20*15=300.
Now of the Price is more than that Co is over valued and vice versa.