# How do I calculate the p/e ratio for Reliance Home Finance?

#### mntolia

##### New Member
Hi,

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. It's not there on screener or moneycontrol.

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?

#### 5paisa

##### 5paisa
Here is the snapshot of Reliance Home Finance According the formula for PE ratio
The formula for calculating the price-earnings ratio for any stock is simple: the market value per share divided by the earnings per share (EPS). This is represented as the equation (P/EPS), where P is the market price and EPS is the earnings per share.

So following the formula,
You will need the current market price to be divided by EPS or Earning Per Share
In this case, EPS is 0, so we cannot calculate PE Ratio