New Delhi, July 29 -- Zomato, or Eternal as it is now called, has always commanded a high price-to-earnings (PE) multiple.

The PE multiple measures how much investors are willing to pay per unit of earnings. It's calculated by dividing the current share price by the earnings per share (EPS). For example, if a stock's price is Rs.200 and company's EPS is Rs.10, the PE multiple is 20. This means investors are paying Rs.20 for every Re 1 of earnings.

The PE multiple is used to assess a stock's valuation. A high PE multiple can indicate that a stock is expensive relative to its earnings or that investors expect high future growth. Conversely, a low PE multiple might suggest the stock is undervalued or that investors have lower growth expect...