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Market Intelligence › Basic Terminologies
Price divided by EPS.
Published by The Retail Trader · JUL 31, 2026 · Market Basics
P/E Ratio — Price divided by EPS. How many rupees are you paying to earn one rupee? Always compare it with other stocks in the same sector, not with different industries.
This term comes under Market Basics, in the "COMPANY NUMBERS" section. There is a business behind the chart. These are the basic numbers that come in the news after every result:
Other terms in this group — understanding them together is more useful:
• Revenue / Topline
• Net Profit / Bottomline
• EPS (Earnings Per Share)
• Book Value
• P/B Ratio
• Dividend Yield
• ROE (Return on Equity)
• ROCE
• Debt-to-Equity
• Operating Margin
• Promoter Holding
• Pledged Shares
To read the entire group and all its examples in one place, see the journal "MARKET BASICS: ABC of Market" - this term has been taken from there.
This entry is for educational purposes only and is not a recommendation to buy or sell. Exchanges change charges, margins, lot sizes and expiry rules from time to time, so verify any figures with your broker or exchange.