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Question 85Asked in DSSSB TGT Computer Science (Technical), 13 Sep 2025, Shift 3 (5:00 PM)

What does the Price-to-Earnings (P/E) ratio indicate in business evaluation?

  1. AHow much investors are willing to pay for each rupee of earnings
  2. BThe efficiency of asset utilization
  3. CThe company’s total debt obligations
  4. DThe company's liquidity position
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Correct answer: (A) How much investors are willing to pay for each rupee of earnings

Explanation

The P/E ratio = market price per share ÷ earnings per share. It shows how many rupees investors pay for each rupee of earnings.

From DSSSB TGT Computer Science PYQ (Technical), 13 Sep 2025, Shift 3 (5:00 PM)

This is question 85 of DSSSB TGT Computer Science PYQ (Technical), 13 Sep 2025, Shift 3 (5:00 PM). See all questions of this paper with answers, or attempt the paper as a timed online test to get your score and all-India rank.