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1. S P Aghera   I Like It. |Report Abuse|  Link|February 8, 2008 6:03:30 PMReply
Sometimes P/E ratio will confuse to judge real performance of any company. Example: If company X have share price is Rs 1000 and EPS is Rs 10 then P/E = 100. But if Share price is Rs 1000 and performance of company is very good and very good Net profit and EPS is Rs 20, then P/E = 50. Them what to judge about this company?