This is while 16 companies at TSE have a P/E ratio of higher than 100 and another 16 are in negative territory, Securities and Exchange News Agency reported. The market’s highest P/E ratio belongs to Zagros Pharmed standing at 1,086. Mellat Investment has the lowest at -80. The P/E ratio is the ratio for valuing a company that measures its current share price relative to its per-share earnings. It can be calculated as market value per share divided by earnings per share. In general, a high P/E suggests that investors are expecting higher earnings growth in the future compared to companies with a lower P/E. A low P/E can indicate either that a company may currently be undervalued or that the company is doing exceptionally well relative to its past trends, Financial Tribune reported.
EghtesadOnline: The average price-to-earnings ratio of Tehran Stock Exchange-listed companies stands at 6.9.