The price-to-earnings ratio (P/E ratio) is the ratio for valuing the benchmark Nifty 50 Index that measures its current price relative to its earnings. The P/E ratio is used to determine the relative value of the benchmark Nifty 50 Index and is used to compare the Nifty 50 Index against its own historical record or long term average. A high P/E ratio could mean that the Index is overvalued, or that markets are expecting high growth rates in the future.