Full formBusiness & Corporate
PERstands forPrice Earnings Ratio
Full Form of PER
What is PER?
The Price Earnings Ratio (PER) is a financial metric used to evaluate the relative value of a company's shares. It is calculated by dividing the current market price per share by the earnings per share (EPS). In India, PER is widely employed by investors, analysts, and financial institutions to compare stocks within the same industry or against the broader market. A high PER may indicate that a stock is overvalued or that investors expect strong future growth, while a low PER could suggest undervaluation or lower growth expectations. This ratio appears frequently in stock market analysis, equity research reports, and business news platforms like Moneycontrol and Bloomberg Quint. PER is also a critical concept in finance and commerce examinations such as the Chartered Accountancy (CA), Company Secretary (CS), and MBA programs. Understanding PER helps students and professionals make informed investment decisions and assess market sentiment.
PER का फुल फॉर्म
मूल्य-आय अनुपात
Example
The company's high PER of 30 indicates that investors expect strong future growth.
PER — frequently asked questions
What is the full form of PER?
The full form of PER is Price Earnings Ratio, a financial ratio that measures a company's current share price relative to its earnings per share.
How is PER calculated?
PER is calculated by dividing the current market price of a share by its earnings per share (EPS).
Why is PER important for investors?
PER helps investors determine if a stock is overvalued or undervalued by comparing its price to its earnings, aiding in investment decisions.