The P/E ratio is the ratio of company’s stock price to earnings per share. It is a market prospect ratio which is useful in valuing companies. Guide to what is PE Ratio and its meaning. We explain how to calculate price to earnings ratio along with its formula , examples, limitations. Price to Earnings Ratio is the ratio of the current price of a company’s share in relation to its earnings per share. Get to know its formula , types, use, and more on Groww. Price earnings ratios ( P/E ratio ) measures how many times the earnings per share (EPS) has been covered by current market price of an ordinary share.
