P/E Ratio (Price-to-Earnings)
A stock's price divided by its trailing twelve-month earnings per share — the most common shorthand for how expensive a stock is relative to its profit.
P/E tells you how many rupees investors are currently paying for each rupee of a company's annual profit. A P/E of 10 means the market is pricing the stock at 10 times its trailing-twelve-month (TTM) earnings.
On its own, a P/E number means little — it only becomes useful compared against something: the same company's own P/E history, its sector average, or a peer with a similar business. A low P/E can mean a stock is undervalued, or it can mean the market expects earnings to fall; a high P/E can mean growth is expected, or that the stock is simply expensive.
StockPulse computes TTM EPS from the last four reported quarters, so P/E updates every time a new quarterly result is filed, not just once a year.