Difference between Symbol PE (Price to Earning Ratio) and Adjusted PE

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What is the difference between Symbol PE (Price to Earning Ratio) and Adjusted PE.  In the NSE website (attached), two PE ratio is being displayed one is Symbol PE and other is Adjusted PE.

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On 29 July 2024 at 17:52 Report
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9113 Points Joined December 2011

According to SEBI (Securities and Exchange Board of India), the difference between Symbol PE and Adjusted PE is: _Symbol PE (Price-to-Earnings Ratio):_ 1. Calculated using the current market price of the share. 2. Earnings per share (EPS) is calculated based on the latest reported net profit. 3. Symbol PE is a simple PE ratio calculation, widely used by investors. _Adjusted PE (Adjusted Price-to-Earnings Ratio):_ 1. Calculates PE ratio after adjusting for extraordinary and exceptional items. 2. Adjusts for one-time gains or losses, ensuring a more accurate reflection of the company's true earnings. 3. Provides a more comprehensive picture of the company's financial health. Key differences: 1. _Extraordinary items_: Adjusted PE excludes extraordinary items, while Symbol PE includes them. 2. _EPS calculation_: Adjusted PE uses adjusted EPS, while Symbol PE uses reported EPS. 3. _Accuracy_: Adjusted PE provides a more accurate representation of the company's earnings, while Symbol PE may be influenced by one-time events. SEBI recommends using Adjusted PE for a more informed investment decision, as it provides a clearer picture of the company's financial performance.

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On 30 July 2024 at 16:20


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