What is the payback ratio?

The flood of IPOs of new-age companies has sparked countless debates on valuations in recent years. And more often than not, these debates are centred around P/E. Take the example of Nykaa. When the new age cosmetic seller debuted on D-street, many veterans pinched their noses when they saw a P/E of 1,600 times.

This article was originally published on March 21, 2023.