P/E ratio — what price for ₹1 of profit?
P/E = share price ÷ EPS. A P/E of 30 means investors
pay ₹30 for every ₹1 of yearly profit. Lower can mean cheaper, higher can mean the market expects big growth
— or that it's overpriced. Rule: only compare P/E within the same industry. IT companies and banks
naturally have very different P/Es.
Two mango carts: both earn ₹100/day. One costs ₹3,000 to buy, the other ₹9,000. The
₹3,000 one is "cheaper" for the same earnings — that's what a lower P/E means.