What it is
The P/E ratio divides the share price by earnings per share (EPS). It roughly tells you how many years of current profit it would take to earn back the price.
Formula
P/E = share price ÷ EPS. A KRW 60,000 stock with EPS of KRW 6,000 trades at 10x. Market cap ÷ net income gives the same figure.
What to keep in mind
A low P/E is not automatically cheap: one-off profits or expected declines push it down. Averages differ by industry, so compare peers, and check whether it uses trailing or forward earnings. Loss-making companies have no meaningful P/E.
This explanation is general information, not investment advice. Rules reflect September 2026 and may change; check official exchange and broker notices.