PE RATIO
WHAT IS PE RATIO IN STOCK MARKET The PE ratio is commonly used for stock selection, whether it is suitable to buy or not. The PE ratio as certain the value of a company based on the current stock value per share for every rupee of its future earning. PE ratio helps to understand company's worth presently and future growth anticipated based on how its share prices are relative to its earning per share. It is a important tool for the investors for stock evaluation. If a PE ratio is high, it means that the stock is overvalued and take the decision not to buy that particular stock. If PE ratio is low, investors takes the decision to buy it due to it cheap price. P/E Ratio Formula P/E Ratio = (Current Market Price of a Share / Earnings per Share) Price to Earnings Ratio is one of the most widely-accepted metrics by analysts and investors across the world. It signifies the amount of money an investor is willing to invest i...