n NISM Certifications
XV NISM Series XV
Medium

A company reported a net profit of ₹300 crore and has 4,72,60,223 outstanding shares. The current market price is ₹718. What is the P/E ratio?

Practice question from NISM XV Mock Test 2 — bank. The correct answer is highlighted below with a full explanation.

Options

  1. A

    1.31

  2. 11.31

    Correct answer

  3. C

    1.131

  4. D

    113.1

Why this is the answer

EPS = 300,00,00,000 ÷ 4,72,60,223 ≈ 63.48. P/E = 718 ÷ 63.48 ≈ 11.31.

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