what is P/E?
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Answer / tushar
P/E is used for Price Earning Ratio. It is a basic formula
to calculate pay back period of an Investment.
Example: A company's share price in market is 100.
Earning per share of that company is 10.
then P/E ratio will be 100/10 i,e. 10.
It means a investor can receive back his investment in 10
Years.
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