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Price-to-Earnings (P/E) ratio compares stock price to per-share earnings; high P/E suggests growth expectations, low P/E suggests value.

ସୂତ୍ର

Calculate P/E = stock price / earnings per share
P
stock price / earnings per share — stock price / earnings per share
E
stock price / earnings per share — stock price / earnings per share

ଷ୍ଟେପ୍-ଷ୍ଟେପ୍ ଗାଇଡ୍ |

  1. 1Calculate P/E = stock price / earnings per share
  2. 2Compare to historical average and peers
  3. 3Assess if valuation reasonable

ସମାଧାନ ହୋଇଥିବା ଉଦାହରଣ

ଇନପୁଟ୍
Stock $100, EPS $5
ଫଳ
P/E = 20 (compare to industry average ~18)
Slight premium suggests confidence

ଏଡ଼ାଇବା ଯୋଗ୍ୟ ସାଧାରଣ ଭୁଲ

  • Using trailing vs. forward P/E inconsistently
  • Comparing across industries (P/Es vary)

ବାରମ୍ବାର ଜିଜ୍ଞାସା

Is high P/E always bad?

No, justified if earnings expected to grow rapidly.

ସେଟିଂ