A P/E of 25 means investors pay ₹25 for every ₹1 of annual profit. A high P/E can mean investors expect fast growth, or that the stock is expensive. Compare P/E with similar companies in the same industry rather than across sectors.
Finance glossary
What is Price-to-earnings ratio (P/E)?
A company's share price divided by its earnings per share, showing how much investors pay for each rupee of profit.