P/E Ratio Calculator
Calculate P/E ratio and estimate fair value of any stock
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| Scenario | Result |
|---|---|
| Price ₹1000, EPS ₹50, Industry PE 25 | P/E: 20×, Fair Value: ₹1,250 (+25% upside) |
| Price ₹500, EPS ₹10, Industry PE 25 | P/E: 50× (overvalued vs industry) |
P/E Ratio = Share Price / EPS. It shows how much investors pay for each rupee of earnings. A P/E of 20 means investors pay ₹20 for every ₹1 of annual profit. Compare with sector average — stocks with lower P/E than peers may be undervalued.
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- Nifty 50's historical average P/E is around 20–22×. During bull markets it can go to 28–32×; during bear markets, 14–16×. At time of writing (2025), Nifty 50 P/E is around 22–24×.
- Not necessarily. Low P/E can mean the market expects low growth, or the business is declining. Compare P/E within the same sector and look at the PEG ratio (P/E divided by growth rate) for a fuller picture.
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