What Is PE In Share Market? How To Use This Ratio To Make Better Investments?
The price/earnings ratio (P/E ratio) compares a company’s share price with its earnings and helps investors to assess whether a share is overvalued or undervalued. It is calculated as market price per share ÷ earnings per share (EPS) and reflects market expectations. A high P/E ratio often signals growth potential, while a low P/E ratio