P/E is short for the ratio of a company's share price to its per-share earnings. As the name implies, to calculate the P/E, you simply take the current stock price of a company and divide by its earnings per share (EPS):
P/E Ratio = | Market Value per Share |
Earnings per Share (EPS) |
EPS Ratio = | PAT |
TOTAL NO. OF O/S SHARES |
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