@raghav14
PE ratio and the rationale behind it is a whole subject by itself. Its not something that will unravel itself in a single post from me. You will have to put in some hard yards and read up relevant books, and some posts on the subject.
Basant Maheshwari in his book the Thoughtful investor has covered the subject as far as I recall it. There is Five rules for successful stock investing by Pat Dorsey which also I think deals with the subject.
And PE ratio is not something etched in stone. It is a valuation market is willing to give to a company based on a lot of factors and market levels. I can give you an example which taught this thing to me. Ajanta pharma back in 2010-11. The stock had grown its earnings at a cagr of 37% cagr in previous 5 years and was available at PE ratio of 5-7 for a period of around 1 year post that. You can go through the thread on ajanta from the start and see the posts which shows my disbelief about why the stock quoted only at 5-7 PE inspite of consistently good quarterly numbers. And 3-4 years later, it was quoting at around 30-40 PE.
You can also go through a thread on art of valuation on VP.
@Bikash I dont track solara active.