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analysis · beginner

Price-to-earnings

The price-to-earnings ratio compares a stock’s market price with its earnings per share.

Indian investors commonly quote trailing twelve-month and one-year forward PE multiples.

Index PE for Nifty is widely used as a broad valuation snapshot.

Sector norms differ, so a consumer PE is not judged like a PSU bank PE.

Negative or distorted earnings can make PE less meaningful for analysis.

Part of the Market Pulse Term of the Day series — factual market vocabulary, not investment advice.