DSE P/E Ratio Calculator

What is the P/E Ratio?

The Price-to-Earnings (P/E) ratio is one of the most widely used metrics for valuing companies on the Dhaka Stock Exchange. It tells you how much investors are willing to pay for every Taka of profit a company generates.

How to Calculate P/E Ratio on DSE

The formula is straightforward:
P/E Ratio = Market Price per Share / Earnings Per Share (EPS)

When using this on the DSE, make sure to use Annualized EPS. If a company has reported earnings for three quarters, you should project the fourth quarter or use the Trailing Twelve Months (TTM) EPS for accuracy.

Interpreting P/E in the Bangladesh Context

• P/E < 10: Often considered undervalued or "cheap." However, investigate if there are fundamental reasons (low growth, management issues) for the low price.
• P/E 10-18: Generally considered the "Fair Value" range for most manufacturing and banking stocks in Bangladesh.
• P/E > 25: May indicate a "Growth Stock" where investors expect high future earnings, or it could be a sign of a price bubble.

Earnings Yield: The Inverse of P/E

Our calculator also provides the Earnings Yield (EPS / Price). This is useful for comparing a stock's return to other investments like Fixed Deposits (FD) or Savings Certificates (Sanchaypatra). If a stock's earnings yield is 5% but a bank FD gives 10%, the stock might be overvalued unless it has high growth potential.