We will learn about P/E today, also called PE or PriceToEarnings
P/E = share price/EPS (EPS we learned earlier — earnings per share) What it means in layman’s language is how much money you need to invest in a company to get Rs1 as returns if P/E = 20, it means if you invest Rs20 — that company will give you Re1 returns on investment If P/E = 40, it…