Q&A 161
Read this 🧵to understand ROE, PE & relationship between them.👇
PE expansion to bridge the Gap (if any) between ROE & PE.
RT if you find this helpful.
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ROE is PE's brother from another mother / Half-brother (Sautela Bhai)
@Atulsingh_asan
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ROE & PE definition continued..
Keep an eye on Equations !
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Establishing Relationship between ROE (profitability) & PE (valuation).
Replace Market Capitalization with Book value in Earnings Yield (or PE) we get ROE.
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Understanding ROE & PE deeper with Dupont Analysis.
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