What is the Full Form of PE?

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PE full form

The full form of PE is Physical Education. In simple words, it is an academic discipline that primarily focuses on the holistic development of students through physical activity and fitness. For this, the discipline focuses on different exercises to enhance your motor skills, physical fitness, and overall well-being. In this way, the motive behind offering PE in schools is to promote an active and healthy lifestyle in students from a young age.

Also Read: What is the Full Form of SAI?

What does PE Mean in Business and the Stock Market?

Another full form of PE in the world of business and the stock market is Price to Earnings Ratio. It is one of the most widely used measures to determine the value of a company by simply comparing the price of a stock to its earnings. It helps businesses determine whether a stock at its current market price is expensive or cheap. 

Also Read: What is the Full Form of NSE?

How do I Calculate my PE?

Below we have mentioned the different ways to calculate the price-to-earnings ratio.

  1. P/E = Stock Price Per Share / Earnings Per Share
  2. P/E = Market Capitalization / Total Net Earnings
  3. Justified P/E = Dividend Payout Ratio / R – G (Here, R= Required Rate of Return and G= Sustainable Growth Rate)

Why Use the Price to Earning Ratio?

  • It can help investors decide whether a particular stock is overpriced or undervalued. 
  • Price to Earning Ratio can also be used to assess the growth potential of a company. 
  • The P/E Ratio also helps assess the risks associated with a particular company or its stocks. 
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We hope this blog has helped you understand the PE Full Form and everything related to it. If you want to know more, find the full forms list on our blog. In the world of short forms, you can rely on the Leverage edu page to know about more full forms like this! Connect with us study abroad experts to achieve your international dream today!

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