Can you give more clarity on PE Ratio

Thanks for your comments. The definition of P/E ratio is very simple (share price by EPS), but a comprehensive understanding of how P/E ratio works in different situations and its relevance in investing is a complex topic. In management schools, entire chapters and classroom sessions are devoted to P/E ratio. It is very difficult to comprehensively cover all aspects of the topic in a 1500 – 2000 word article. Given our readership base and the varied investing experience levels of our readers (ranging from new investors to experienced financial advisors), we tried to cover different applications of P/E ratio.

But we appreciate your feedback. We will devote more articles to this topic over the next few months, so that you can get a comprehensive understanding of what P/E ratio is, how it works, situations where it is useful and situations where its usefulness is limited. Please continue to follow us and share your thoughts / inputs. Thanks again.

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