Importance of Price Earning (PE) Ratio for Retail Investors: An Analytical Study of Top Nifty Stock

Abstract

The main purpose of this research work is to explore the importance of price to earnings ratios (PE) on behalf of retail investors. Consequently, this research contributes appreciably to the restricted literature on this subject matter therefore, in relation to above mentioned investors in developing countries. The stock market place during the recent years is considered to a barometer of our Indian financial system. Trading within the stock market place is subjected to numerous marketplace hazards, even though they provide us with diversification to the portfolio of such investors. Thus, in order to achieve and gain targets of the study, rigorous statistics panel has been employed and these findings placed forth during the observation affirmed that on one hand there exists a positive as well as quality end result to have a look which establishes that income per percentage has determined to be a completely robust forecaster of market charge of percentage, while the price earnings ratios impact extensively at the prediction of market price of some share as a whole. Several implications and barriers related during investment strategies that to have a look at are also have been mentioned.