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

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.