I wanted to know how do I calculate the price to earnings ratio for Reliance Home Finance. Its a spin-off of Reliance Capital. It was listed on September 22nd.
I know the formula for p/e but I am getting different results with different formulas.
When I take market price divided by eps I get the p.e to be 5.31 (108/20.35)
But when I calculate the market cap (5300 cr) divided by annual netprofit (172.59 cr) I get around 30.
So I was wondering which one is right?