PE Ratio – To understand whether the stock markets or company is overvalued, a good indicator is the PE ratio. PE ratio = price per share / earnings per share Historically the Nifty PE ratio ranges between 15-25. In the event that the PE ratio falls below 20, you can say that the...
Is there a way to calculate a Explain how a price-weighted index and a value-weighted index adjust for stock splits. Most firms like to have their stock selling at a high P/E ratio, and they also like to have extensive public ownership (many...