The P/E Ratio

The What, How and Why of the P/E ratio in the context of Indian listed shares. The Price to Earnings Ratio is a way to value companies, instead of depending on purely their share prices. 

Deepak Shenoy talks about what the ratio is, how you can obtain it in India or calculate it yourself, and finally, why it is used. A quick introduction to the concept, and will be followed by more short takes on the P/E ratio's use.

(6 minutes)

Comments

super

just wondering..why is it posted on youtube?
you could make use of a better voice :D

P/E ratios

Deepak,

One issue that is sometimes vexing is that - even today - many publications report stand-alone EPS. This is true for the top-sheet in BSE as well. When the company has overseas operations, and now a fair number do, the would-be analyst should make sure he is getting consolidated numbers.

Mohit

P/E Ratio

Hi Deepak

It is so nice to see some good fundamental and basic videos. You are explaining the things to the minute details.

I have a doubt related to P/E ratio. I think EPS calculations are done based on outstanding shares and not just shares.

Please re-check and share your thoughts.

Thanks
Achin

Achin: Outstanding shares is

Achin: Outstanding shares is the same as shares? In India at least. But you calculate it on "Diluted" shares, a concept i'll talk about later.

 

Mohit: I agree - nowadays standalone makes very little sense!

 

Anon: We'll have to do with my voice for now, but yes, we'll add better voices :)