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    • Personal Finance | A primer on how to use PE in investing

      What are the determining factors in a PE ratio 

    • Indian equities now trade below long-term valuations, but are they cheap? No, say analysts

      Currently, the Sensex and Nifty are trading at one-year forward price to earning multiples of 19.09x and 18.45x, respectively, compared to their 10-year averages of 19.3x and 18.5x.

    • Chart of the Day: What is the Mcap-to-GDP ratio signalling about equity valuations?

      The ratio is close to highs scaled in December 2007 just prior to the unfolding of the Global Financial Crisis

    • Vertical limit: 70% of Nifty 500 companies trade at valuation higher than long-term average

      According to Moneycontrol analysts, the Nifty 500 Index shows a wide range of price-to-earnings (PE) ratios among its constituent stocks. About 22 stocks have PE ratios between 1 and 10 based on the trailing 12-month earnings, while 77 stocks fall in the 10-20 PE range.

    • Over 20 Nifty stocks trade below average 5-year P/E and P/B; time to buy?

      If a stock is trading below its average 5-years PE and PB it means that stock is trading below its fair value, and it is just a matter of time before prices correct themselves and converge back towards its fair value.

    • Over 50 stocks with a m-cap of Rs 10,000 cr trade below 2008 P/E; should you buy?

      A lower P/E ratio does not always imply that the company is undervalued. The reason behind the lower P/E ratio can be the poor financial performance or decrease in earning.

    • The role of P/E multiple in deciding investment returns

      A portfolio full of only consistent compounders can deliver healthy absolute returns, regardless of the external market

    • Classroom | Cheap or expensive: How to value a stock (Equity: Part 8)

      The absolute price of a stock is no indication of whether a stock is cheap or expensive. Its valuation depends upon different measures, the most popular of which is the price to earning or P/E multiple.

    • A new way to start SIP in mutual fund, SmartSIP by FundsIndia: Is it really smart?

      Unlike value averaging SIPs, the SmartSIP will keep the monthly amount constant, but will allocate between equity and debt based on market conditions.

    • Explained: The role of skill vs the role of time in markets

      Does it take time or skillset to garner returns in the market? A quite trade-off in itself, the choice depends on the goal of the investor.

    • Sensex, Nifty on a roll; 5 ways to de-risk your portfolio

      Portfolio re-balancing should normally be an ongoing process, a function on one’s target portfolio and asset allocation.

    • How to gauge stock market tops

      Most successful investors have the ability to call the cycle right. For them fighting for the last rupee for a good entry or a good exit is not important.

    • Amid sell-off, Mirae Asset sees value emerging in IT stocks

      Gopal Agrawal, Chief Investment Officer at Mirae Asset Global Investments, believes that the spate of bad news that has hit the sector has resulted in valuations becoming cheaper.

    • Raamdeo Agrawal: Do not judge this market by its PE ratio

      The Indian market has been on a upward ride ever since it crashed to 52-week lows of about 6,800 in February. Having risen about 30 percent since, it has led some analysts to wonder if the market has become expensive, especially since the long-awaited real turnaround in earnings is yet to take place.

    • Positive on IT; NBFC valuations over-stretched: HDFC Securities

      The chase of high growth has led to valuation skewness in the sectoral order of India's stock markets. So much that while investors have been out on a limb betting on NBFCs, they have been most downbeat on the IT sector.

    • ITC shares may have turned the corner

      Below is an analysis of the key financial indicators of the company and also where brokerages stand on the stock.

    • Russia's lessons: Being a contrarian without getting burnt

      Drawing from the experience of the Russian market's recent collapse, here are lessons one can take away on value investing and how one can be a contrarian investor and save themselves from being burnt.

    • Rosy mkt forecasts are back; and why you should ignore them

      Just as predicting earnings growth is difficult, predicting valuations is fraught with danger.

    • Putting book value and price-earnings ratio in perspective

      Book value and PE ratio are common yardsticks to value a business. But they need to be put in perspective to arrive at a true picture.

    • Sensex & PEG ratio: Are valuations justified?

      PEG ratio is the P/E ratio dividend by the EPS growth of a company. The general thumb rule is that an investor should avoid buying into a company when the PEG ratio is in excess of one.

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