Hello Everyone, PE or P/E or Price multiple or Earnings multiple all refers to the same thing. This is one of the important metrics that is used when looking at a stock. To understand PE, we need to understand what P and E ( Earnings per share ) mean. P is easy to understand, It's the price of the given stock or we can take LTP(Last traded price). EPS(Earnings per share):- Firstly, It is calculated at the end of the fiscal year after the given organization’s financials are declared. Let's work with an example, if ABC Ltd has an outstanding share of 100000 at the end of the given fiscal year it has made a profit of 200000 for the same fiscal year then the earnings per share are as shown below. EPS formula :- 200000(Total Net Profit)/100000(Total Outstanding shares) = 2 per share NB:- The above formula can get complex in the real world but the basic concept is the same. This means, for each share, the shareholder holds