How to use it
- Type the share price.
- Type the EPS from the company's latest report.
- Add book value per share to see the PB ratio.
What PE means
PE is price divided by earnings per share. A PE of 20 means you pay Rs 20 for every Rs 1 the company earns in a year. Lower can mean cheaper, but compare with similar companies.
FormulaPE = Price / EPS. PB = Price / Book value per share
Where to find EPS
Listed companies publish EPS and book value in their quarterly reports. StockYan shows them on every stock page.
Learn more
What is WACC in NEPSE?Questions
What is a good PE ratio in NEPSE?
There is no single number. Compare a stock's PE with others in the same sector, like banks with banks.
What is the PB ratio?
Price divided by book value per share. Below 1 means you pay less than the company's net worth per share.
Why does PE not work for some stocks?
If a company makes a loss, its EPS is negative and PE has no meaning.
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