A P/E ratio of 50 indicates ______?
- Low valuation
- High valuation
- No valuation
- None of these
Explanation
- A P/E ratio of 50 generally indicates a high valuation.
- The P/E (Price-to-Earnings) ratio compares a company's share price with its earnings per share.
- A P/E of 50 means investors are paying Rs. 50 for every Rs. 1 of current earnings.
- A high P/E may indicate high growth expectations or that the stock is relatively expensive.
Last verified on 13-08-2026
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