P/E Ratio — Price-to-Earnings ratio. The P/E ratio is the stock price divided by annual earnings per share.

P/E Ratio — Price-to-Earnings ratio | Glossary | Vitthub

Definition

What is P/E Ratio?

The P/E ratio is the stock price divided by annual earnings per share. A P/E of 25 means investors are paying ₹25 for every ₹1 of current earnings. Historical market P/Es: Nifty ~22, S&P 500 ~20, FTSE ~15. High P/E signals growth expectations; low P/E signals value or pessimism.