The P/E ratio (Price-to-Earnings ratio) shows how much investors are paying for each rupee of a company's earnings. It's calculated by dividing the stock price in INR by the earnings per share (EPS) in INR. For example, if a stock costs ₹200 and the company earns ₹20 per share, the P/E ratio is 10. A higher P/E might suggest that investors expect strong future growth, while a lower P/E could mean the stock is undervalued or the company is facing challenges.