HomeLearn › 🏢 Company health (fundamentals)

P/E ratio — what price for ₹1 of profit?

P/E = share price ÷ EPS. A P/E of 30 means investors pay ₹30 for every ₹1 of yearly profit. Lower can mean cheaper, higher can mean the market expects big growth — or that it's overpriced. Rule: only compare P/E within the same industry. IT companies and banks naturally have very different P/Es.
Two mango carts: both earn ₹100/day. One costs ₹3,000 to buy, the other ₹9,000. The ₹3,000 one is "cheaper" for the same earnings — that's what a lower P/E means.

See it live in the app →