P/E (price ÷ earnings) prices greed: under ~15 is value land, 15–25 normal, 30+ demands serious growth. Compare within sectors only. Full guide: P/E ratio.
ROCE (profit ÷ all capital) measures quality: sustained 15–20%+ marks a moat; under 10% destroys value after funding costs. Debt cannot flatter it - that is the point.
ROE (profit ÷ equity) measures shareholder compounding - but leverage inflates it, so always read it beside ROCE and debt levels.
P/B (price ÷ book value) suits banks and asset-heavy firms: below 1 often prices distress, not bargains, unless asset quality is clean.
The two-minute combo: P/E under 25 + ROCE above 15% filters most junk instantly. It is exactly the pairing behind the extension's AI Verdict - cheap plus efficient flags research candidates; expensive plus weak flags avoids.
Frequently asked questions
Which single ratio matters most?
ROCE for quality, P/E for price. One without the other misleads - great businesses at absurd prices still lose money.
Apply this lesson inside Ticker Screener — real prices, real ratios, zero brokerage login needed.
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P/E Ratio
Price-to-earnings: what you pay for each rupee or dollar of yearly profit. The starting lens for cheap vs expensive.
ROCE
Return on capital employed: how efficiently a company turns invested money into profit. Above 15–20% signals quality.
ROE
Return on equity: profit earned per rupee of shareholder money. High and stable ROE compounds wealth.
P/B Ratio
Price-to-book: market price versus net asset value per share. The classic yardstick for banks and asset-heavy firms.
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